Interlocutory application on subsequent events must be decided first before final orders in a Section 7 IBC petition.

An interlocutory application placing subsequent events on record should be decided before final orders are passed on a Section 7 IBC company petition where the later developments may affect prejudice and fairness. The court noted that the prior appellate order had already permitted the petitioner to bring subsequent materials before the adjudicating authority, including developments such as the stay of the DRT order by the DRAT and claimed compliance steps. Because deciding the application and the petition together could cause real prejudice, prior consideration of the application was held justified in the interests of justice, and limited interim protection was granted.

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Issues: Whether the adjudicating authority should first decide the petitioner's interlocutory application bringing subsequent events on record before passing final orders on the company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The petitioner sought deferment of the final order in the company petition so that subsequent developments, including the stay of the DRT order by the DRAT and the petitioner's stated compliance steps, could be placed before the adjudicating authority. The prior appellate order had also permitted the petitioner to move the adjudicating authority with subsequent materials. In these circumstances, the possibility of prejudice if the interlocutory application and the company petition were decided together was found to be real, and the request for prior consideration of the application was held to be justified in the interests of justice.

Conclusion: The interlocutory application was directed to be decided first before any final order is pronounced on the company petition, and the requested interim protection was granted in limited form.

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