# In the matter of State Bank of India Vs. Anuj Bajpai (Liquidator) CA (AT) (Insolvency) No. 509-2019

> NCLAT judgment dated 2019-11-18. Citation: TCN-2019-NCLAT-00110. The case involves a Company Appeal (AT) (Insolvency) No. 509 of 2019 before the National…

- **Court:** NCLAT
- **Order date:** 18 Nov 2019
- **Citation:** TCN-2019-NCLAT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-anuj-bajpai-cb6ef314

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 509 of 2019 before the National Company Law Appellate Tribunal (NCLAT), New Delhi. The appeal arises from an order dated 8th April, 2019, by the NCLT, Mumbai Bench, concerning the 'Corporate Insolvency Resolution Process' of 'Sanaa Syntex Private Limited' (Corporate Debtor). The Liquidator had filed an application under Section 60(5)(c) of the ‘Insolvency and Bankruptcy Code, 2016' seeking directions regarding the Adjudicating Authority's decision concerning 'Secured Financial Creditor' - ‘State Bank of India' and its mortgaged assets. The NCLT partly allowed the application, granting permission to the ‘Secured Creditors' to opt out of the liquidation process but imposing a bar on selling the assets of the

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## Facts

Sanaa Syntex Private Limited (Corporate Debtor) underwent the 'Corporate Insolvency Resolution Process'. The Liquidator filed an application seeking directions regarding the Adjudicating Authority's decision concerning State Bank of India (SBI), a 'Secured Financial Creditor', and its mortgaged assets. SBI sought to keep its mortgaged assets out of the liquidation of the ‘Corporate Debtor'. The NCLT allowed secured creditors to opt out of liquidation but barred them from selling assets to disqualified persons under Section 29A of the I&B Code. SBI challenged this order, arguing that there is no bar for a ‘secured creditor' to sell the assets to any person, including promoters ineligible under Section 29A. The liquidator argued that allowing such sales would defeat

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## Issues and analysis

### Issue 1: Whether the Appellant, who is a ‘Secured Financial Creditor', while opting out of liquidation …

**Ratio:** The ratio is that the restrictions imposed by Section 29A of the I&B Code apply not

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**Reasoning:** The reasoning is based on the interpretation of Section 35(1)(f) of the I&B Code,

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**Interpretation:** The interpretation is that Section 29A is a crucial provision designed to

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**Application:** The application of the ratio and reasoning to the specific facts is that SBI,

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## Parties

- **Judges:** S.J. Mukhop…; KanthiNar…
- **Appellants:** State Bank of…
- **Respondents:** Sanaa Syntex…; Anuj Bajpai…
- **Advocates:** P. V. D…; Ashwini Kumar…; +6 more

## Timeline

- **2019-04-08 — Order by NCLT, Mumbai…**: NCLT, Mumbai Bench, issued an order partly allowing secured creditors to opt out of…
- **2019-11-18 — NCLAT Or…**: NCLAT dismissed the appeal, upholding the decision that secured creditors opting out of…

## 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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