Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insolvency and Bankruptcy Code 14 2016: ss. 238 10 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Insolvency and Bankruptcy Code, 2016: ss. 238, 10, 14 – Provisions of the Code to override other laws – On facts, corporate debtor filed an insolvency petition u/s. 10 on 22.10.2018 – NCLT admitted the petition on 03.01.2019, moratorium was notified and Interim Resolution Professional was appointed – Meanwhile the appellant bank issued the second E-auction notice on 27.11.2018, to recover the public money availed by the corporate debtor – Thereafter, E-auction was held by the Bank, the properties were sold, sale certificate was issued and the sale was completed on 8.03.2019 – Promoter of the corporate debtor filed an application before NCLT to set aside the security realization during the CIRP period carried out by the Bank or in alternative cancel the impugned transaction – NCLT set aside the sale of the property owned by the corporate debtor – Appeal thereagainst rejected by the NCLAT – On appeal, held: After the commencement of the CIRP, there is complete prohibition for any action to foreclose, recover or enforce any security interest created by the Corporate debtor in respect of its property including any action under the SARFESI Act in the view of s.14(1)(c) rw s.238 which have overriding effect over any other law – On facts, the balance amount was accepted by the appellant Bank on 8.03.2019 – Sale under the statutory scheme as contemplated u/rr. 8 and 9 would stand completed only on 8.03.2019, which falls much after 03.01.2019, i.e., on which date CIRP commenced and moratorium was ordered – As such, it cannot be accepted that the sale was complete upon receipt of the part payment – Appellant Bank could not have continued the proceedings under SARFESI Act once the CIRP was initiated and the moratorium was ordered – Thus, the orders of NCLT and NCLAT does not call for interference –Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – s. 13 – Security Interest Enforcement Rules – rr. 8, 9. |
Judge | Hon'ble Mr. Justice Bhushan Ramkrishna Gavai |
Neutral Citation | 2022 INSC 584 |
Petitioner | Indian Overseas Bank |
Respondent | M/s Rcm Infrastructure Ltd. And Another |
SCR | [2022] 7 S.C.R. 1090 |
Judgement Date | 2022-05-18 |
Case Number | 4750 |
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