# The Cosmos Co-operative Bank Ltd. v. Kailash T. Shah, Resolution Professional of M/s. Viceroy Hotels Ltd. & Others

> NCLAT judgment dated 13 Nov 2025. Citation: TCN-2025-NCLAT-00040. The present appeal was filed by The Cosmos Co-operative Bank Ltd., the sole Financial…

- **Court:** NCLAT
- **Order date:** 13 Nov 2025
- **Citation:** TCN-2025-NCLAT-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/the-cosmos-co-operative-bank-ltd-v-kailash-t-shah-resolution-professional-of-ms-9b69efa4

## Summary

### Background

The present appeal was filed by The Cosmos Co-operative Bank Ltd., the sole Financial Creditor and member of the Committee of Creditors (CoC) of Sterling Lam Limited (the Corporate Debtor), under Section 61 of the Insolvency and Bankruptcy Code, 2016. The appeal challenges an order dated February 22, 2024, passed by the National Company Law Tribunal, Ahmedabad Bench (Adjudicating Authority) in IA No. 195(AHC)/2024 in CP (IB) No. 72 of 2018. The Adjudicating Authority directed the Resolution Professional, Shri Kailash T. Shah, to release an amount of Rs. 1,31,19,769.08 in favor of the Gujarat State Tax Department, treating it as a secured creditor under Section 48 of the Gujarat Value Added Tax Act, 2003. This direction was issued while deciding I.A. No. 522 of 2021, an

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## Facts

CP (IB) 72/2018 was initiated by Ramniklal S. Gosalia & Co. under Section 9 of the IBC before the Adjudicating Authority for the Corporate Insolvency Resolution Process (CIRP) of Sterling Lam Limited. The Adjudicating Authority admitted the application on November 10, 2020, and appointed Mr. Rajendra Jain as the Interim Resolution Professional (IRP).

On November 20, 2020, the IRP issued a public announcement inviting claims from the creditors of Sterling Lam Limited. Respondent No. 3, the Gujarat State Tax Department, submitted a claim of Rs. 38,58,19,833/- on December 1, 2020. This claim was verified and admitted only to the extent of Rs. 3,37,65,975/- on December 17, 2020.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority exceeded its jurisdiction by directing the Resolution…

**Ratio:** An Adjudicating Authority acts within its jurisdiction when it directs the disbursement…

**Reasoning:** The NCLAT reasoned that the Adjudicating Authority did not exceed its jurisdiction…

**Interpretation:** The court interpreted the Adjudicating Authority's powers under the IBC to…

**Application:** In this case, the Gujarat State Tax Department's claim as a secured creditor…

## Parties

- **Judges:** Yogesh K…; Indevar P…
- **Other parties:** 8th Edition…; Resolutio…; +12 more
- **Advocates:** For the Appellant:…; Tushar…; +7 more

## Timeline

- **November 10, 2020 — CIRP Init…**: Adjudicating Authority admitted CP (IB)…
- **December 1, 2020 — Claim Subm…**: Gujarat State Tax Department submitted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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