# In the matter of IDFC First Bank Ltd. & Ors. vs. Seikh Abdul Salam, RP of Jai Gokul Towers Pvt. Ltd. & Ors.

> NCLAT judgment dated 2026-03-11. Citation: TCN-2026-NCLAT-00047. The appeals challenge an order dated 24.04.2024, passed in IA(IB)No.592/(KB)/2024 in CP (IB)…

- **Court:** NCLAT
- **Order date:** 11 Mar 2026
- **Citation:** TCN-2026-NCLAT-00047
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/idfc-first-bank-ltd-ors-vs-seikh-abdul-salam-rp-of-jai-gokul-towers-pvt-ltd-ors-e5d1439c

## Summary

### Background

The appeals challenge an order dated 24.04.2024, passed in IA(IB)No.592/(KB)/2024 in CP (IB) No. 218/(KB)/2023, which allowed an application filed by the Resolution Professional (RP). The order declared the confirmation of sale and issuance of a sale certificate in favor of the Auction Purchaser as invalid due to the initiation of CIRP and the imposition of a moratorium.

## Facts

IDFC First Bank Ltd. sanctioned a Term Loan of Rs.25 crores to Monotona Tyres Ltd.

Jai Gokul Towers Pvt. Ltd. was one of the Guarantors of the Term Loan Facility.

A Mortgage Deed was executed on 01.02.2018, and the Corporate Debtor had a 1/6th share in the mortgaged property.

Financial Creditor filed a Commercial Suit (L) No.310 of 2018 against Monotona Tyres Ltd. and others for recovery of dues.

A Decree dated 04.04.2018 was passed, ordering Defendant Nos.1 to 10 to jointly and severally pay Rs.30,06,68,557/- plus interest.

Recovery Officer of DRT issued a proclamation of sale notice on 08.09.2023 for the sale of the subject land.

Quest Queen Vista LLP was declared the Successful Auction Purchaser on 12.10.2023.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in declaring the confirmation of sale and issuance of sale …

**Ratio:** The Adjudicating Authority's order was unsustainable because the sale confirmation

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**Reasoning:** The Adjudicating Authority failed to consider the effect of confirmation of sale, which

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**Interpretation:** The confirmation of sale is a critical event that determines the transfer of

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**Application:** In this case, the sale confirmation occurred on 20.11.2023, before the CIRP

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** IDFC First Bank…; Quest Queen Vista…
- **Respondents:** Jai Gokul Towers…; Seikh Abdul…; +2 more
- **Other parties:** Seikh Abdul…; Miller Traders…
- **Advocates:** Jagriti…; Ajay M…; +13 more

## Timeline

- **2017-10-01 — Facility Ag…**: Facility Agreement in October 2017, immovable property described in Schedule-5 bearing…
- **2018-02-01 — Mortgage…**: A Mortgage Deed was also…

## 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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