# In the matter of State Bank of India Vs. Punjab National Bank & Ors. CA (AT (Insolvency) No. 329 & 529-2018

> NCLAT judgment dated 2019-01-31. Citation: TCN-2019-NCLAT-00824. The appeals involve an internal dispute between State Bank of India and Punjab National Bank…

- **Court:** NCLAT
- **Order date:** 31 Jan 2019
- **Citation:** TCN-2019-NCLAT-00824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-punjab-national-bank-ors-ca-e9f63079

## Summary

### Background

The appeals involve an internal dispute between State Bank of India and Punjab National Bank regarding the distribution of Rs. 300 crores collected from the sale of the Corporate Debtor's assets before the initiation of the Corporate Insolvency Resolution Process. Punjab National Bank claims that State Bank of India encashed the amount during the moratorium period and did not distribute the shares to other banks, nor was it reflected in the Resolution Plan.

## Facts

State Bank of India and Punjab National Bank are in dispute over Rs. 300 crores collected from the sale of assets of a Corporate Debtor before the Corporate Insolvency Resolution Process began. Punjab National Bank alleges that State Bank of India, acting as the lead bank, encashed the entire amount during the moratorium period and did not distribute the shares to other banks involved. This amount was also not reflected in the Resolution Plan. All the banks had a charge on the sale proceeds. The Resolution Plan approved by the Adjudicating Authority is not under challenge.

## Issues and analysis

### Issue 1: Whether internal dispute between the Banks with regard to generation of money out of the sale …

**Ratio:** The legal principle involves determining the appropriate forum for resolving disputes

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**Reasoning:** The court seeks to determine whether the Resolution Professional or the Adjudicating

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**Interpretation:** This involves interpreting the scope of authority of the Resolution

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**Application:** The court will apply the relevant provisions of the I&B Code to determine

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** State Bank of…
- **Respondents:** Punjab National…
- **Advocates:** Abhay G…; NU Srini…; +8 more

## Timeline

- **2019-01-31 — Order Da…**: The court heard the appeals relating to an internal dispute between State Bank of India…
- **2019-02-11 — Next Hearin…**: The appeals were posted for…

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