# In the matter of State Bank of India vs. Cable Corporation of India Ltd.

> NCLAT judgment dated 2024-05-30. Citation: TCN-2024-NCLAT-00391. The case involves two Interlocutory Applications (I.A. Nos. 3944 & 3956 of 2024) filed in…

- **Court:** NCLAT
- **Order date:** 30 May 2024
- **Citation:** TCN-2024-NCLAT-00391
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-cable-corporation-of-india-ltd-5f69413c

## Summary

### Background

The case involves two Interlocutory Applications (I.A. Nos. 3944 & 3956 of 2024) filed in Company Appeal (AT) (Insolvency) No. 1174 of 2023. I.A. No. 3956/2024 was filed by State Bank of India (SBI) seeking directions for the release of securities. I.A. No. 3944/2024 was filed by Cable Corporation of India Ltd. seeking modification of a previous judgment to direct the Respondent (SBI) to issue a no-dues certificate, release securities, and hand over relevant documents. The appeal arises from an order dismissing Section 7 application filed by SBI.

## Facts

State Bank of India (SBI) filed I.A. No. 3956 of 2024 seeking directions for the release of securities. Cable Corporation of India Ltd. filed I.A. No. 3944 of 2024 seeking modification of a previous judgment to direct SBI to issue a no-dues certificate, release securities, and hand over relevant documents. A previous judgment dated 23.04.2024 directed the Corporate Debtor to deposit Rs.3.68 crores with SBI for clearing liabilities of existing live PBGs. SBI had filed an application stating that no harm would be caused if the securities were released to another consortium banker, Punjab National Bank (PNB). Cable Corporation of India Ltd. had requested SBI to release the securities to PNB. An investigation officer from the Economic Offence Wing, Mumbai, had sent a

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## Issues and analysis

### Issue 1: Whether the State Bank of India (SBI) should be permitted to release the securities to Punjab …

**Ratio:** When multiple parties are involved in a consortium, and one party is willing to release

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**Reasoning:** The court considered that SBI had already submitted that no harm or prejudice would be

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**Interpretation:** The interpretation is based on the principle of facilitating efficient

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**Application:** The court applied the ratio to the specific facts by permitting SBI to release

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** State Bank of…
- **Respondents:** Cable Corporation…

## Timeline

- **2023-01-01 — Company Appea…**: Company Appeal (AT) (Insolvency)…
- **2024-04-23 — Previous Ju…**: Judgment dated 23.04.2024 issued directions regarding the deposit of Rs.3.68 crores by…

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