# In the matter of Orchid Pharma Ltd. MA-646 & 763-2019 in CP-540-IB-2017

> NCLT judgment dated 5 Aug 2019. Citation: TCN-2019-NCLT-02092. The case involves an application (MA/763/2019 in MA/646/2019) filed by the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 5 Aug 2019
- **Citation:** TCN-2019-NCLT-02092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/orchid-pharma-ltd-ma-646-763-2019-in-cp-540-ib-2017-6e910b30

## Summary

### Background

The case involves an application (MA/763/2019 in MA/646/2019) filed by the Financial Creditor, Allahabad Bank, seeking directions regarding the distribution of margin money. The Bench noted that allowing the application would not affect the stay granted by the NCLAT in Appeal Nos. 761 & 762 of 2019. The application was allowed, but the Resolution Professional was directed to mention MA/646/2019 after the pending appeal before the NCLAT is decided.

## Facts

Allahabad Bank, as a Financial Creditor, filed an application (MA/763/2019 in MA/646/2019) seeking directions regarding the distribution of margin money. The NCLT Chennai Bench considered the application in relation to a stay order granted by the NCLAT in Appeal Nos. 761 & 762 of 2019. The court found that allowing the application would not affect the stay. The Resolution Professional was directed to mention MA/646/2019 after the appeal pending before NCLAT is decided. The corporate debtor is Orchid Pharma Ltd.

## Issues and analysis

### Issue 1: Whether the application MA/763/2019 filed by Allahabad Bank seeking directions regarding the …

**Ratio:** An application can be allowed if it does not contravene any existing orders or stays by

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**Reasoning:** The court reasoned that allowing the application would not affect the stay granted by the

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**Interpretation:** This interprets the court's power to grant applications that facilitate the

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**Application:** The ratio was applied to the specific facts by determining that the requested

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Allahabad…
- **Respondents:** ORCHID PHAR…; Resolution…

## Timeline

- **2017-01-01 — Petition…**: CP/540/IB/2017 was…
- **2019-08-05 — Hearing…**: Hearing held at 2.30…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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