# In the matter of Kunwer Sachdev vs. Indian Bank & Ors.

> HC judgment dated 2024-02-12. Citation: TCN-2024-HC-00129. The case involves a writ petition filed by Mr. Kunwer Sachdev, ex-Director of Su-Kam Power Systems…

- **Court:** HC
- **Order date:** 12 Feb 2024
- **Citation:** TCN-2024-HC-00129
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/kunwer-sachdev-vs-indian-bank-ors-21d09b13

## Summary

### Background

The case involves a writ petition filed by Mr. Kunwer Sachdev, ex-Director of Su-Kam Power Systems Limited, against several banks, financial institutions, and the IBBI, concerning the Corporate Insolvency Resolution Process (CIRP) of Su-Kam Power Systems Limited. The petitioner raised grievances regarding the functioning of the Committee of Creditors (CoC) and sought guidelines for effective monitoring and functioning of the CoC. The petitioner also challenged proceedings initiated against him based on personal guarantees and sought to bar further proceedings under the RDDBFI Act or IBC against him.

## Facts

Mr. Kunwer Sachdev, the ex-Director of Su-Kam Power Systems Limited, filed a writ petition challenging the CIRP process of Su-Kam Power Systems Limited, which had commenced in 2018. The petitioner raised concerns about the functioning of the Committee of Creditors (CoC), alleging that the CoC diminished the value of the company's assets. He claimed the company was valued at Rs. 300 crores but was sold for a meager Rs. 10 crores. The petitioner also pointed out that the Resolution Professional had proposed raising interim finance to keep the company as a going concern, but the CoC rejected this proposal. The petitioner further alleged that he was not allowed to bring in investors to settle outstanding dues. The petitioner also challenged proceedings initiated against

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## Issues and analysis

### Issue 1: Whether the IBBI should frame/finalize a code of conduct/guidelines for the effective functioning …

**Ratio:** The commercial wisdom of the CoC is paramount, but it must be exercised in a fair,

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**Reasoning:** The court reasoned that the CoC plays a significant role in the CIRP, and its decisions

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**Interpretation:** The court interpreted the provisions of the IBC and relevant regulations to

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**Application:** The court applied the ratio and reasoning to the facts of the case, finding

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## Parties

- **Judges:** Purushaindra…
- **Appellants:** KUNWER SA…
- **Respondents:** Su-Kam Power…; IDBI…
- **Other parties:** Kohi…

## Timeline

- **2018-01-01 — CIRP Commen…**: Su-Kam Power Systems Limited entered…
- **2018-10-01 — Resolution Professional…**: Resolution Professional approached the court to protect and preserve the most valuable…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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