# In the matter of Sibanarayan Chhotray vs. Indian Overseas Bank & Anr.

> NCLAT judgment dated 2024-12-17. Citation: TCN-2024-NCLAT-00021. The case involves two appeals filed by the Suspended Director of Srabani Constructions Pvt.…

- **Court:** NCLAT
- **Order date:** 17 Dec 2024
- **Citation:** TCN-2024-NCLAT-00021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sibanarayan-chhotray-vs-indian-overseas-bank-anr-7195665f

## Summary

### Background

The case involves two appeals filed by the Suspended Director of Srabani Constructions Pvt. Ltd. challenging orders passed by the Adjudicating Authority (National Company Law Tribunal) Cuttack Bench. The first appeal, No. 887 of 2024, contests an order dated 17.04.2024, related to the rejection of a request to recall a liquidation order. The second appeal, No. 2246 of 2024, challenges an order dated 21.11.2024, concerning the continuation of an auction process. The corporate debtor had taken financial facilities from Indian Overseas Bank in 2011 and defaulted since 2015. Several OTS proposals were submitted but not finalized, leading to the initiation of CIRP under Section 7 of IBC. The CoC decided to replace the Resolution Professional, and eventually, the

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## Facts

Srabani Constructions Pvt. Ltd. obtained financial facilities from Indian Overseas Bank in 2011 and defaulted from 2015. Seven OTS proposals were submitted in 2017 but not finalized. Indian Overseas Bank initiated CIRP under Section 7 of IBC in CP (IB) No.199/CB/2020. From 22.01.2020 to 07.09.2023, nine OTS proposals were submitted, and Rs.48 lakhs were deposited, but the proposals were not sanctioned. The Section 7 application was admitted on 29.11.2022. The first CoC meeting was on 29.12.2022, and the second on 22.03.2023, where the CoC decided to replace the Resolution Professional. An application to replace the Resolution Professional was filed on 06.07.2023 and allowed on 09.10.2023. IA (IB) No.354/CB/2023 was filed on 30.11.2023 for exclusion of the CIRP period

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in rejecting IA (IB) No.93/CB/2024 filed by …

**Ratio:** The power to recall a judgment can be exercised when any procedural error is committed in

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**Reasoning:** The NCLAT considered the grounds available for recall of a judgment and the grounds

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**Interpretation:** The interpretation of the power to recall a judgment is limited to specific

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**Application:** In this case, the Appellant's grounds for recall did not fall within the

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## Parties

- **Judges:** Ashok Bh…
- **Appellants:** Sibanarayan…
- **Respondents:** Srabani Constructi…; Indian Overseas…

## Timeline

- **2011-01-01 — Financial Facilities…**: Srabani Constructions Pvt. Ltd. took…
- **2015-01-01 — Default Com…**: Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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