# Technology Development Board Vs.  Mr. Anil Goel and Ors. CA (AT) (Ins) No. 731 of 2020

> NCLAT judgment dated 2021-04-05. Citation: TCN-2021-NCLAT-00296. The Technology Development Board filed I.A. No. 514 of 2019 in CP (IB) 404/2017 as a…

- **Court:** NCLAT
- **Order date:** 5 Apr 2021
- **Citation:** TCN-2021-NCLAT-00296
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/technology-development-board-vs-mr-anil-goel-and-ors-ca-80e81cbc

## Summary

### Background

The Technology Development Board filed I.A. No. 514 of 2019 in CP (IB) 404/2017 as a financial creditor of Gujarat Oleo Chem Ltd., which was under liquidation. The Appellant, part of the Committee of Creditors (CoC) with a 14.54% voting share, lodged a claim of Rs.24,78,68,595/- with the Liquidator. The Liquidator did not call for a creditors' meeting for a year and a half, and when a meeting was scheduled, the Appellant could not attend. The Appellant was informed that the sale proceeds had been distributed among Stressed Asset Stabilisation Fund and Gujarat State Finance Corporation as security charge holders. The Appellant contended that the distribution was not in line with the Insolvency and Bankruptcy Code, 2016, as its claim was admitted and it had voting

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## Facts

The Technology Development Board (Appellant) was a financial creditor of Gujarat Oleo Chem Ltd. (Corporate Debtor), which was undergoing liquidation. The Appellant was part of the Committee of Creditors (CoC) and held a 14.54% voting share. The Appellant lodged a claim of Rs.24,78,68,595/- with the Liquidator. The Liquidator did not convene a creditors' meeting for an extended period. When a meeting was scheduled, the Appellant was unable to attend. The Liquidator informed the Appellant that the sale proceeds had been distributed to Stressed Asset Stabilisation Fund and Gujarat State Finance Corporation, who were security charge holders. The Appellant objected to the distribution, arguing that it was not in accordance with the Insolvency and Bankruptcy Code, 2016, as

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## Issues and analysis

### Issue 1: Whether there can be no sub-classification inter-se the Secured Creditors in the distribution …

**Ratio:** Section 53(1)(b)(ii) of the I&B Code provides that debts owed to a Secured Creditor,

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**Reasoning:** The court reasoned that while relinquishment of security interest affects the order of

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**Interpretation:** Section 52 incorporates the doctrine of election, and when read with Section

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**Application:** In this case, the Secured Creditors admittedly having relinquished their

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## Parties

- **Judges:** Bansi Lal…; Ashok Kumar…; +1 more
- **Appellants:** TECHNOLOGY…
- **Respondents:** Gujarat Oleo Chem…; Anil…
- **Other parties:** 7th Edition…; relinqu…; +6 more

## Timeline

- **2017-01-01 — Initiation…**: CIRP initiated against…
- **2017-01-17 — Liquidation…**: Process for liquidation of Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 53 — Distribution of assets](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-53)

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