Whether an order passed by the Adjudicating Authority becomes operative from the date it is pronounced or the order become operative only when it is uploaded on the website – Rishi Kapoor Vs. Kashi Vishwanathan Sivaraman RP of Kindle Developers Pvt. Ltd. – NCLAT New Delhi
CIRP initiation Order was pronounced by the Adjudicating Authority on dated 09.03.2018 and the same was uploaded on the website on 22.06.2018. The fact that order has not been uploaded till 22.06.2018 whether it shall be treated to have taken away the implementation of the order dated 09.03.2018, is the question to be answered.
NCLAT holds Section 13 of the Code requires the Adjudicating Authority, after admission of the Application under Section 7 or 9, by an order to declare a Moratorium for the purposes referred to in Section 14. The order dated 09.03.2018 indicate that after admission, Moratorium was declared and an IRP was also appointed. The effect and consequence of the order dated 09.03.2018 shall not remain suspended only on the ground that the order was not uploaded on the website. When the statute specifically provides for declaration of Moratorium after admission of the Application, the said declaration cannot remain suspended and inoperative for any reason. When a Tribunal or Court pronounce an order in accordance with Rule, the legal consequences from the order flow from pronouncement of judgment and its operation shall not be suspended on specious submission as was contended before us that since order was uploaded on 22.06.2018, it shall not become operative.