# In the matter of Securities And Exchange Board Of India Vs Kerala Housing Finance Ltd

> NCLAT judgment dated 2020-08-18. Citation: TCN-2020-NCLAT-00159. The appeal concerns the issue of whether money collected from investors through the issuance…

- **Court:** NCLAT
- **Order date:** 18 Aug 2020
- **Citation:** TCN-2020-NCLAT-00159
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/securities-and-exchange-board-of-india-vs-kerala-housing-finance-ltd-142e7cf7

## Summary

### Background

The appeal concerns the issue of whether money collected from investors through the issuance of securities can be included in the liquidation assets of the corporate debtor, as per Section 36(4)(a)(i) of the Insolvency and Bankruptcy Code (I&B Code).

## Facts

The Securities and Exchange Board of India (SEBI) filed an appeal against Kerala Housing Finance Ltd. (KHFL) & Ors. The central issue in the appeal is whether money collected from investors through the issuance of securities can be included in the liquidation assets of KHFL, the corporate debtor, according to Section 36(4)(a)(i) of the I&B Code. The court issued a notice to the respondents and directed the appellant to provide their contact information. The impugned order was stayed until the next hearing.

## Issues and analysis

### Issue 1: Whether money collected from investors by way of issuance of securities can be included in the …

**Ratio:** The ratio is based on the interpretation of Section 36(4)(a)(i) of the I&B Code,

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**Reasoning:** The court's reasoning hinges on whether the funds collected from investors are considered

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**Interpretation:** Section 36(4)(a)(i) of the I&B Code is interpreted to determine the scope

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**Application:** The application involves examining the specific terms of the securities issued

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## Parties

- **Judges:** Bansi Lal…; Jarat Kuma…; +1 more
- **Appellants:** Securities and…
- **Respondents:** Kerala Housing…

## Timeline

- **2020-08-18 — Order Da…**: Court addresses the issue of whether money collected from investors through securities…
- **2020-09-16 — Next Hearin…**: The matter is listed for further…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36(4) — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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