JUDGEMENT

ASHOK BHUSHAN, J. This Appeal has been filed against the order dated 03.02.2022 passed by National Company Law Tribunal, Cuttack Bench, Cuttack rejecting IA No.139/CB/2021 filed by the Appellant by which Appellant had prayed for stay of the proceedings in CP(IB)No.16/CB/2021.

2. Brief facts necessary for deciding this Appeal are:

(i) Electrosteel Castings Limited (“ESL”) availed a financial assistance from SREI Infrastructure Finance Limited (“SREI”) for a sum of Rs.500,00,00,000/- on 26th July, 20211. The Facility Agreement was secured by a third-party mortgage by deposit of title deeds over the factory land of the Appellant at Elavur Village, Ponneri Taluk, Chingleput District, Tamil Nadu.

On 27th July, 2011, Appellant had executed Deed of Undertaking, Warranty and Indemnity.

(ii) The State Bank of India, one of the lenders of ESL filed an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “Code”), on which Corporate Insolvency Resolution Process (“CIRP”) was initiated against ESL vide order dated 21st July, 2017. In CIRP of ESL, a Resolution Plan was submitted by Vedanta Limited, which was approved on 17th April, 2018. In the Resolution Plan an amount of INR 5320 Crores was deposited in an escrow account, which was to be distributed to the Financial Creditors of the ESL. Simultaneously, with the deposit of the upfront payment, the unsustainable debt was converted into fully paid- up equity shares of ESL with a face value of INR 10/- each.

(iii) SREI executed a Deed of Assignment in favour of UV Asset Reconstruction Company Limited (Respondent herein) on 30th June, 2018 and assigned the debt due and payable by ESL to the Respondent.

(iv) The Respondent initiated proceedings under the SARFAESI Act, 2002 by issuing notice under Section 13, sub-section (2) on 27th December, 2018 to the Appellant. The possession notice was issued by the Respondent under Section 13, sub- section (4) of the SARFAESI Act on 19th June, 2019. The Appellant filed Application No.4322 of 2019 for leave before the Madras High Court to institute a suit. The Appellant also filed an Application under Section 17 of the SARFAESI Act before Debt Recovery Tribunal (“DRT”) on 17th July, 2019, which was returned by the Registry of DRT on 2nd August, 2019 pointing out defects. The learned single Judge of Madras High Court rejected the leave Application filed by the Appellant vide its judgment dated 13th September, 2019, against which order, the Appellant filed an Appeal being O.S.A. No.292 of 2019, which too was dismissed by the Division Bench of the Madras High Court vide judgment dated 13th August, 2021.

(v) When the Appeal before the Madras High Court filed by the Appellant was pending, the Respondent has filed Application under Section 7 being CP(IB)No.16/CB/2021 on 20th April, 2021 before the Adjudicating Authority. On 12th August, 2021 the Appellant filed its affidavit in reply to Section 7 Application.

(vi) Against judgment dated 13th August, 2021, the Appellant filed a Civil Appeal No.6669 of 2021 before the Hon’ble Supreme Court (converted from Special Leave petition being SLP (C) No.13138/2021). The Hon’ble Supreme Court vide its judgment dated 26th November, 2021 dismissed the Civil Appeal No.6669 of 2021. The Hon’ble Supreme Court also granted the liberty to the Appellant to file an Application under Section 17 within two weeks before the DRT Chennai.

(vii) On 4th December, 2021, the Appellant filed S.A. No.434 of 2021 under Section 17 of the SARFAESI Act before the DRT Chennai.

On 16th December, 2021, the Appellant filed an IA No.139 of 2021 before the Adjudicating Authority seeking order of stay or keeping in abeyance the Section 7 Application until the final adjudication and disposal of the Application filed before DRT Chennai.

(viii) The learned Adjudicating Authority after hearing the parties vide impugned order dated 3rd February, 2022 rejected the IA No.139