# In the matter of Cosmos Co-Operative Bank Ltd. vs. CS Anaghaanasingaraju (Liquidator) and Ors.

> NCLAT judgment dated 2025-07-08. Citation: TCN-2025-NCLAT-00300. This appeal is filed by a secured creditor, Cosmos Co-Operative Bank Ltd., challenging the…

- **Court:** NCLAT
- **Order date:** 8 Jul 2025
- **Citation:** TCN-2025-NCLAT-00300
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/cosmos-co-operative-bank-ltd-vs-cs-anaghaanasingaraju-fc0a061c

## Summary

### Background

This appeal is filed by a secured creditor, Cosmos Co-Operative Bank Ltd., challenging the order dated 14.11.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in I.A. No. 4874/2023, which directed the appellant to make a contribution out of the amount realised by it under Section 52 of the Insolvency and Bankruptcy Code, 2016, proportionately towards workmen's dues and liquidation cost.

## Facts

The corporate debtor, Pandit Automotive Private Ltd., mortgaged its immovable property with the appellant as a guarantor.

The appellant issued a notice under Section 13(2) of the SARFAESI Act, 2002, to the borrower companies and the corporate debtor.

The appellant took symbolic possession of the property on 18.10.2017 after issuing a notice under Section 13(4) of the SARFAESI Act.

CIRP against the corporate debtor commenced on 12.03.2018 based on an application filed under Section 7 by Reliance Commercial Finance Limited.

The Committee of Creditors (CoC) decided on 09.07.2018 to proceed with the liquidation of the corporate debtor.

The Adjudicating Authority passed an order on 09.08.2018, directing the liquidation of the corporate debtor.

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## Issues and analysis

### Issue 1: Whether Regulation 21A of the Liquidation Regulation, 2016 is applicable to the present case, …

**Ratio:** Regulation 21A is prospective and applies only to liquidation processes commencing on or

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**Reasoning:** The regulation itself and subsequent clarifications by IBBI indicate that it is not

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**Interpretation:** The NCLAT interpreted the regulation and its explanation to mean that it cannot

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**Application:** Since the liquidation in this case commenced on 09.08.2018, Regulation 21A is

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Cosmos Co-Operativ…
- **Respondents:** Pandit Automotive…; CS Anaghaanasingar…; +1 more
- **Other parties:** Reliance Commercia…
- **Advocates:** Ramchandra…; Tushar…; +4 more

## Timeline

- **2017-10-18 — Symbolic Pos…**: Appellant took symbolic possession of the property after issuing notice under Section…
- **2018-03-12 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) against the corporate debtor commenced…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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