# In the matter of Osian’s Connoisseurs of Art Private Limited

> NCLT judgment dated 27 Jul 2023. Citation: TCN-2023-NCLT-02319. SEBI filed an interlocutory application seeking a declaration that funds collected by the…

- **Court:** NCLT
- **Order date:** 27 Jul 2023
- **Citation:** TCN-2023-NCLT-02319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/osians-connoisseurs-of-art-private-limited-26824dca

## Summary

### Background

SEBI filed an interlocutory application seeking a declaration that funds collected by the Corporate Debtor for an 'Art Fund' be kept outside the resolution process and a direction to the Resolution Professional to refund the amount to investors, as per a SEBI Order.

## Facts

The Corporate Debtor, Osian's Connoisseurs of Art Private Limited, is an auction house and archive that also provides investment advisory and art custodial management services. In 2006, the Corporate Debtor settled a private Trust, Osian's Art Fund (Trust), under the Indian Trusts Act, 1882. Oseta Investments Trustee Company Private Limited (Trustee) was appointed as the Trustee, and the Corporate Debtor became the Asset Management Company of the Trust.

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## Issues and analysis

### Issue 1: Whether the sum of Rs. 30,86,62,832/- collected from investors for the 'Art Fund' should be kept…

**Ratio:** Assets held in trust by a separate entity, even if managed by the Corporate Debtor, do…

**Reasoning:** The Corporate Debtor and OAF are distinct entities with segregated assets. The Corporate…

**Interpretation:** The NCLT interpreted the relationship between the Corporate Debtor and OAF as…

**Application:** The NCLT applied this interpretation to conclude that the funds of the 'Art…

## Parties

- **Judges:** H.V. Subb…; Smt Madhu…
- **Advocates:** For the Applicant:…; For the Respondent…; +1 more

## Timeline

- **March 10, 2006 — Trust Deed e…**: The Corporate Debtor settled a private Trust called Osian's Art Fund under the Indian…
- **October 12, 2007 — Show cause notice…**: SEBI issued a show cause notice to the Corporate Debtor regarding actions under Section…

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