# In the matter of State Bank of India Vs. Metenere Ltd. CA (AT)(Ins) No.76 of 2020

> NCLAT judgment dated 2020-05-22. Citation: TCN-2020-NCLAT-00256. The State Bank of India, as the Financial Creditor, initiated Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 22 May 2020
- **Citation:** TCN-2020-NCLAT-00256
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-metenere-ltd-ca-ca0d2626

## Summary

### Background

The State Bank of India, as the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Metenere Ltd. by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The National Company Law Tribunal (NCLT) raised an objection from the Corporate Debtor regarding the proposed Interim Resolution Professional (IRP), Mr. Shailesh Verma. The NCLT directed the Financial Creditor to substitute Mr. Verma, citing his prior 39-year employment with the State Bank of India and potential bias. The Financial Creditor appealed this decision, arguing that the I&B Code does not disqualify ex-employees of Financial Creditors and that the IRP is not required to be an independent umpire.

## Facts

The State Bank of India, acting as the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Metenere Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor proposed Mr. Shailesh Verma as the Interim Resolution Professional (IRP). The Corporate Debtor objected to Mr. Verma's appointment, citing his 39-year employment with the State Bank of India and his current receipt of pension from the bank. The Adjudicating Authority (NCLT) upheld the Corporate Debtor's objection and directed the Financial Creditor to substitute Mr. Verma. The Financial Creditor appealed this decision, arguing that the I&B Code does not disqualify ex-employees of Financial Creditors from serving as IRPs. Mr. Verma retired as

…

## Issues and analysis

### Issue 1: Whether an ex-employee of a Financial Creditor, receiving pension from the same, can be appointed …

**Ratio:** The ratio is that the apprehension of bias, even if not amounting to a formal

…

**Reasoning:** The court reasoned that while the I&B Code may not explicitly disqualify

…

**Interpretation:** The interpretation is that the independence and impartiality of the Interim

…

**Application:** The court applied this reasoning to the specific facts, noting that Mr.

…

## Parties

- **Judges:** Bansi Lal…; V. P. S…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** M/s. Metenere…; M/s Metener…
- **Advocates:** Ramji Srin…; Ankur M…; +10 more

## Timeline

- **2018-01-01 — CP No. (IB)-639…**: Filing of CP No. (IB)-639(PB)/2018 before the National Company Law Tribunal, Principal…
- **2020-01-04 — Impugned Ord…**: Order passed by the Adjudicating Authority (National Company Law Tribunal) directing the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-metenere-ltd-ca-ca0d2626