Release of goods before stay order rendered the handover direction spent and the appeal without merit

An appeal against a direction to hand over goods failed because the goods had already been released before the High Court's stay order. The order directing handover was made on 04.09.2020, and the goods were delivered on 28.10.2020. The later stay order dated 02.12.2020 could not undo a release already effected, as no restraint was operating on the Resolution Professional when delivery took place. The impugned direction had therefore worked itself out, and the appeal was dismissed as lacking merit.

---

---

Issues: Whether the appeal against the direction to hand over the goods survived after the goods had already been released to the respondent before the High Court's stay order.

Analysis: The goods were directed to be handed over by the order dated 04.09.2020 and were in fact handed over on 28.10.2020. The stay order passed by the High Court on 02.12.2020 came later and, on the facts recorded, could not undo the release already effected. As there was no restraint operating on the Resolution Professional when the goods were delivered, the impugned direction had already worked itself out.

Conclusion: The appeal was held to have no merit and was dismissed.

---