# In the matter of SBS Holdings, Inc. vs. Mohan Lal Jain

> NCLAT judgment dated 18 Sept 2024. Citation: TCN-2024-NCLAT-00193. This appeal arises from an order dated February 9, 2024, passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 18 Sept 2024
- **Citation:** TCN-2024-NCLAT-00193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sbs-holdings-inc-vs-mohan-lal-jain-86ab048a

## Summary

### Background

This appeal arises from an order dated February 9, 2024, passed by the National Company Law Tribunal (NCLT), New Delhi Bench (Court-II), which dismissed CA No. 24/ND/2023. The appellant, SBS Holdings, Inc., had filed this application to challenge an order issued by the Liquidator on April 3, 2023. The Liquidator's order had rejected the appellant's claim, which was based on an arbitral award. The NCLT upheld the Liquidator's decision, leading the appellant to file the present appeal before the National Company Law Appellate Tribunal (NCLAT).

…

## Facts

The appellant, SBS Holdings, Inc., and its group companies entered into a Memorandum of Understanding ("MoU") with the Corporate Debtor, SBS Transpole Logistics Private Limited, on January 20, 2014. Subsequently, a Shareholders' Agreement was also executed between the appellant and the Corporate Debtor on July 31, 2014. These agreements formed the basis of their commercial relationship.

…

## Issues and analysis

### Issue 1: Whether a claim arising from an arbitral award, which came into existence after the liquidation…

**Ratio:** Claims in liquidation proceedings must exist and be filed as on the liquidation…

**Reasoning:** The court reasoned that the statutory scheme of the IBBI (Liquidation Process)…

**Interpretation:** The court interpreted Regulations 12 and 16 of the Liquidation Regulations…

**Application:** Applying this interpretation, the court found that the appellant's claim, based…

## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Advocates:** For Appel…; Gautam Na…; +7 more

## Timeline

- **January 20, 2014 — MoU Sign…**: The Appellant and its group companies entered into a Memorandum of Understanding ("MoU")…
- **July 31, 2014 — Shareholders'…**: A Shareholders' Agreement was entered between…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/sbs-holdings-inc-vs-mohan-lal-jain-86ab048a