# 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-01549. 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-01549
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stressed-asset-stabilization-fund-vs-nhc-siva-reddy-cp-af3ae0ba

## 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 conducted 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. The court verified Mr. Prasad's registration with IBBI. The court then imposed an interim moratorium, preventing legal actions against the debtor and restricting creditors. The petitioner is required to notify the respondent and provide documents to the RP. The RP must file a report within 10 days. The case was adjourned to August 19, 2022.

## 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 that Mr. K Murali Krishna Prasad's name appears in the IBBI database,

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**Interpretation:** The IBC allows the petitioner to propose a Resolution Professional, subject to

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**Application:** Since Mr. Prasad's name was found in the IBBI database, the court approved his

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **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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