# In the matter of SREI Equipment Finance Ltd. vs. Harsh Arora & Anr.

> NCLAT judgment dated 2024-05-14. Citation: TCN-2024-NCLAT-00437. The case involves an appeal against an order dated 2024-01-29 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 14 May 2024
- **Citation:** TCN-2024-NCLAT-00437
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/srei-equipment-finance-ltd-vs-harsh-arora-anr-1388e221

## Summary

### Background

The case involves an appeal against an order dated 2024-01-29 passed by the National Company Law Tribunal (NCLT), New Delhi, in I.A. 3151/2022 in C.P. (IB) No. 271/PB/2017. The application I.A. 3151/2022 was filed by Punjab National Bank (PNB) seeking directions to the Resolution Professional (RP) to conduct a transaction audit of the Corporate Debtor's books, declare the reconstitution of the Committee of Creditors (CoC) by the RP as illegal, declare the approval of the resolution plan by the illegally constituted CoC as illegal, and set aside the approval of the resolution plan. The NCLT had issued certain directions and ordered the applications to be listed on 2024-03-11.

## Facts

Punjab National Bank (PNB) filed I.A. 3151/2022 seeking directions for a transaction audit, declaring the CoC reconstitution illegal, and challenging the resolution plan approval. The Adjudicating Authority directed the RP to examine the issue afresh, leading to the appeal. The appellant argued that the resolution plan was already approved. PNB stated that an earlier RP was replaced. The NCLAT noted that the Adjudicating Authority had directed notice to all CoC members. The Adjudicating Authority had directed the RP to examine the issue afresh and submit its view. The RP's counsel stated that he had not received the relevant documents from the Appellant and erstwhile RP. The NCLAT considered the impugned order to be interlocutory and disposed of the appeal, leaving all

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## Issues and analysis

### Issue 1: Whether the impugned order passed by the …

**Ratio:** Interlocutory orders are provisional decisions made during the course of litigation that

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**Reasoning:** The NCLAT determined that the impugned order was an interlocutory order because it did

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**Interpretation:** The interpretation of the order as interlocutory means that it is subject to

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**Application:** The NCLAT applied this understanding to the facts by noting that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** SREI EQUIPMENT…
- **Respondents:** Harsh Arora…
- **Advocates:** Krishnendu…; Shambo…; +10 more

## Timeline

- **2017-01-01 — C.P. (IB) No.…**: Proceedings initiated before the National…
- **2021-12-01 — Order Da…**: Order dated 2021-12-01 appointing Mr. Amit…

## 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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