# In the matter of Sudhir Dinanath Chatutvedi vs. True IPE LLP (Liquidator) and Ors.

> NCLAT judgment dated 2025-09-08. Citation: TCN-2025-NCLAT-00483. The appeal was filed against an order passed by the Adjudicating Authority dated 22.01.2025…

- **Court:** NCLAT
- **Order date:** 8 Sept 2025
- **Citation:** TCN-2025-NCLAT-00483
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudhir-dinanath-chatutvedi-vs-true-ipe-llp-6bf5cab3

## Summary

### Background

The appeal was filed against an order passed by the Adjudicating Authority dated 22.01.2025 in I.A. No.1305/2020 in C.P. (IB) No.2392/MB/2019. I.A. No.1305/2020 was filed by the Liquidator praying for certain reliefs, including declaring a loan transaction with IDBI bank as fraudulent and initiating further investigation.

## Facts

The Liquidator filed I.A. No.1305/2020 seeking to declare a loan transaction with IDBI bank by the Corporate Debtor as fraudulent.

The Adjudicating Authority allowed the application under Section 60(5) despite finding that the ingredients of Section 66 were not met.

The Appellant challenged the Adjudicating Authority's order, arguing that the prayers were under Section 66 and against the Financial Creditors.

The loan was taken by the Corporate Debtor from the Financial Creditors in 1998 and subsequently assigned to Stressed Assets Stabilisation Fund (SASF).

The Appellate Tribunal set aside the Adjudicating Authority's order, finding it unsustainable.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in allowing the application under Section 60(5) …

**Ratio:** The Adjudicating Authority cannot allow prayers under Section 60(5) when the ingredients

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**Reasoning:** The Appellate Tribunal found that the Adjudicating Authority itself acknowledged that the

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**Interpretation:** Section 60(5) cannot be used to

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**Application:** The Appellate Tribunal set aside the Adjudicating Authority's order because it

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Sudhir Dinanath…
- **Respondents:** Adya Oils &…; Adya Oils and…; +2 more
- **Other parties:** Liquidator of…
- **Advocates:** Chirag…; Minesh K.…; +1 more

## Timeline

- **2025-01-22 — Order by Adjudicating…**: The Adjudicating Authority passed an order in I.A. No.1305/2020 in C.P. (IB)…
- **2025-09-08 — Hearing by Appellate…**: The Appellate Tribunal heard the appeal against the order passed by the Adjudicating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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