# In the matter of Cosmos Co. Op. Bank Ltd. vs. Kailash T. Shah and Ors.

> NCLAT judgment dated 2025-11-13. Citation: TCN-2025-NCLAT-00562. The Cosmos Co-operative Bank Ltd., the sole Financial Creditor and member of the Committee of…

- **Court:** NCLAT
- **Order date:** 13 Nov 2025
- **Citation:** TCN-2025-NCLAT-00562
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/cosmos-co-op-bank-ltd-vs-kailash-t-shah-and-ors-c98883db

## Summary

### Background

The Cosmos Co-operative Bank Ltd., the sole Financial Creditor and member of the Committee of Creditors of Sterling Lam Limited, filed an appeal against the impugned order dated 22.02.2024 passed by the National Company Law Tribunal, Ahmedabad Bench. The Adjudicating Authority directed Shri Kailash T. Shah, Resolution Professional/ Respondent No. 1, to release an amount of Rs. 1,31,19,769.08 in favour of the Gujarat State Tax Department/ Respondent No.3 treating it as a secured creditor under Section 48 of the Gujarat Value Added Tax Act, 2003.

## Facts

CP (IB) 72/2018 was filed by Ramniklal S. Gosalia & Co. under Section 9 of the Code before the Adjudicating Authority seeking initiation of Corporate Insolvency Resolution Process.

The Adjudicating Authority, vide its order dated 10.11.2020, admitted an application and appointed Mr. Rajendra Jain as Interim Resolution Professional (IRP).

On 20.11.2020, the IRP issued a public announcement inviting claims from the Creditors of the Corporate Debtor/Sterling Lam Limited.

Respondent No. 3/ Gujarat State Tax Department submitted its claim of Rs. 38,58,19,833/- on 01.12.2020, which was verified and admitted only to the extent of Rs. 3,37,65,975/- on 17.12.2020.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority exceeded its jurisdiction by directing the Resolution …

**Ratio:** Section 31(1) of the IBC provides that once the Adjudicating Authority is satisfied that

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**Reasoning:** The Adjudicating Authority was not altering the plan's commercial content or the CoC's

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**Interpretation:** The distinction lies between altering a plan and clarifying or ensuring its

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**Application:** The NCLT's order did not change the structure or commercial terms of the

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## Parties

- **Judges:** Indevar P…; Yogesh K…
- **Appellants:** THE COSMOS CO.…
- **Respondents:** Sterling Lam…; Kailash T…; +2 more
- **Other parties:** Rajendra…
- **Advocates:** Ramchandra…; Tushar…; +5 more

## Timeline

- **2018 — Initiation…**: CP (IB) 72/2018 was filed by Ramniklal S. Gosalia & Co. under Section 9 of the Code…
- **2020-11-10 — Appointment…**: The Adjudicating Authority admitted an application and appointed Mr. Rajendra Jain as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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