# In the matter of Small Industries Development Bank of India (SIDBI) vs. Sumit Sharma and Anr.

> NCLAT judgment dated 2025-09-08. Citation: TCN-2025-NCLAT-00484. The appeal was filed against an order dated 30.06.2025 passed by the adjudicating authority…

- **Court:** NCLAT
- **Order date:** 8 Sept 2025
- **Citation:** TCN-2025-NCLAT-00484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/small-industries-development-bank-of-india-sidbi-vs-sumit-sharma-and-anr-c2c37782

## Summary

### Background

The appeal was filed against an order dated 30.06.2025 passed by the adjudicating authority (National Company Law Tribunal, Jaipur Bench) rejecting I.A. 637/JPR/2023 filed by the appellant.

## Facts

The appellant is a secured financial creditor with 3.22% voting shares in the CoC.

Punjab National Bank (PNB) has 96.68% voting shares in the CoC.

The resolution plan was approved by the adjudicating authority on 12.03.2024.

The CoC decided on the distribution mechanism based on vote shares.

The appellant filed I.A.637/JPR/2023 seeking several reliefs, including declaring certain resolutions as non-est.

The application was dismissed by the adjudicating authority.

The appellant claimed a security interest on the plant and machinery.

The RP submitted that the distribution mechanism was already decided by the CoC based on vote shares.

The Tribunal referred to a previous judgment in 'State Bank of India' Vs. 'IDBI Bank Limited & Anr.' supporting distribution on a pro-rata basis.

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## Issues and analysis

### Issue 1: Whether the distribution of debt between creditors should be based on the security interest of the …

**Ratio:** The distribution should be as

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**Reasoning:** The Tribunal relied on a previous judgment and the decision of the CoC to distribute

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**Interpretation:** The decision emphasizes the importance of the CoC's decision in the

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**Application:** The principle is applied to the current case, upholding the CoC's decision to

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Small Industries…
- **Respondents:** Sumit S…; Erstwhile RP &…
- **Other parties:** Punjab National…
- **Advocates:** NPS Ch…; Abhinav M…; +3 more

## Timeline

- **2025-09-08 — Order Da…**: Heard counsel for the…
- **2025-06-30 — Order Da…**: Order passed by the adjudicating authority (National Company Law Tribunal, Jaipur Bench)…

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