# In the matter of Stressed Asset Stabilization Fund Vs. NHC Siva Reddy, CP (IB) No. 215/95/HDB/2022

> NCLT judgment dated 2022-07-28. Citation: TCN-2022-NCLT-01547. The case pertains to CP (IB) No. 215/95/HDB/2022 filed under Section 95 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 28 Jul 2022
- **Citation:** TCN-2022-NCLT-01547
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stressed-asset-stabilization-fund-vs-nhc-siva-reddy-cp-a05237e5

## Summary

### Background

The case pertains to CP (IB) No. 215/95/HDB/2022 filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner, M/s. Stressed Assets Stabilization Fund, initiated proceedings against the respondents, Mr. N H C Siva Reddy & M/s. Sri Vishnupriya Industries Ltd. The hearing was held on July 28, 2022, via video conference.

## Facts

M/s. Stressed Assets Stabilization Fund filed a petition under Section 95 of the IBC, 2016, against Mr. N H C Siva Reddy & M/s. Sri Vishnupriya Industries Ltd. The petitioner proposed Mr. K Murali Krishna Prasad as the Resolution Professional (RP). Mr. Prasad's registration number is IBBI/IPA-001/IP-P00967/2017-18/11588. The court verified that Mr. Prasad's name appears in the IBBI database. The court then imposed an interim moratorium, preventing legal actions against the debtor and restraining creditors from initiating new proceedings. The petitioner is required to notify the respondent and the RP of the order and application.

## Issues and analysis

### Issue 1: Whether Mr. K Murali Krishna Prasad should be …

**Ratio:** The court has the power to appoint a Resolution Professional based on the petitioner's

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**Reasoning:** The court verified Mr. K Murali Krishna Prasad's registration details

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**Interpretation:** The court interprets the IBC provisions to allow the appointment of a qualified

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**Application:** Given that Mr. Prasad's credentials were verified, the court applied the ratio

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** M/s. Stressed…
- **Respondents:** N H C Siva…

## Timeline

- **2022-07-28 — Hearing…**: Hearing held on July 28,…
- **2022-08-19 — Adjournmen…**: Matter adjourned to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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