# Mehsana Urban Co-operative Bank Ltd. v. Swastik Ceracon Ltd.

> NCLAT judgment dated 2026-03-12. Citation: TCN-2026-NCLAT-00039. The appeal challenges the order dated 30.10.2025 passed by the adjudicating authority…

- **Court:** NCLAT
- **Order date:** 12 Mar 2026
- **Citation:** TCN-2026-NCLAT-00039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mehsana-urban-co-operative-bank-ltd-vs-swastik-ceracon-ltd-712ee5f0

## Summary

### Background

The appeal challenges the order dated 30.10.2025 passed by the adjudicating authority (National Company Law Tribunal, Division Bench, Court I, Ahmedabad) in I.A.370/AHM/2025 in C.P. (IB) No. 175/9/AHM/2018, which allowed I.A. 370/AHM/2025 filed by Swastik Ceracon Limited and directed the appellant to refund ₹56,00,000/- with 10% interest.

## Facts

Swastik Ceracon Limited was subjected to CIRP by order dated 15.01.2019.

Mehsana Urban Co – Operative Bank Ltd. filed a claim in Form-C for ₹10,43,45,631/-.

The resolution plan for Swastik Ceracon Limited was approved on 20.06.2022.

The appellant was proposed an amount of more than ₹5,00,00,000/- under the resolution plan against the admitted claim.

The SRA filed I.A.370/AHM/2025 seeking a refund of ₹56,00,000/- adjusted by the appellant.

The appellant had adjusted dividends and the value of shares during the CIRP period and after the approval of the resolution plan.

The appellant was allocated voting share of 8.9% in the Committee of Creditors (CoC).

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## Issues and analysis

### Issue 1: Whether NCLT has jurisdiction to adjudicate the issues against the appellant, given Section 121 of …

**Ratio:** Section 238 of the IBC overrides other laws, including Section 121 of the Multi-State

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**Reasoning:** The IBC is a code for the resolution of corporate debtors, and when CIRP is initiated,

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**Interpretation:** The provisions of the Companies Act, which are excluded for Multi-State

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**Application:** The appellant, having filed a claim in the CIRP and received amounts under the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Mehsana Urban Co…; Successful…
- **Respondents:** Swastik Ceracon…; Swastik Ceracon…
- **Other parties:** 8th Edition…; Morato…; +14 more
- **Advocates:** Kamlesh…; Palash S. S…; +3 more

## Timeline

- **2025-10-30 — Order Da…**: Order passed by the Adjudicating Authority (National Company Law Tribunal, Division…
- **2019-01-15 — CIRP Init…**: Corporate Insolvency Resolution Process…

## 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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