# In the matter of Satkar Container Lines Pvt. Ltd. (IB)-920(ND)2018

> NCLT judgment dated 2019-07-05. Citation: TCN-2019-NCLT-02659. The case involves CA-833/2019 filed by HDFC Bank, the Financial Creditor, under Section 60(5)…

- **Court:** NCLT
- **Order date:** 5 Jul 2019
- **Citation:** TCN-2019-NCLT-02659
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/satkar-container-lines-pvt-ltd-ib-920nd2018-aa6de77e

## Summary

### Background

The case involves CA-833/2019 filed by HDFC Bank, the Financial Creditor, under Section 60(5) of the Insolvency & Bankruptcy Code. The Corporate Debtor possesses two vehicles as its only assets, which are hypothecated to the applicant bank. The bank seeks permission to sell these vehicles to reduce the Corporate Debtor's liability. The hypothecation deed is not yet on record, but the Counsel has committed to filing it within a week. The case was presented before the New Delhi bench of the National Company Law Tribunal on July 5, 2019.

## Facts

HDFC Bank, as the Financial Creditor, filed CA-833/2019 under Section 60(5) of the Insolvency & Bankruptcy Code. The Corporate Debtor's only assets are two vehicles, a Ford Endeavor and a CIAZ Smart Hybrid Alpha, both hypothecated to HDFC Bank. The bank seeks permission to sell these vehicles to reduce the Corporate Debtor's liability. The hypothecation deed is not currently on record. The Corporate Debtor has no other assets available, making resolution difficult and raising the possibility of liquidation. The Counsel for the Financial Creditor has committed to filing the hypothecation deed within one week. The case was adjourned to July 17, 2019.

## Issues and analysis

### Issue 1: Whether the Financial Creditor should be granted permission to sell the Corporate Debtor's vehicles …

**Ratio:** The Financial Creditor's right to sell hypothecated assets depends on the validity and

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**Reasoning:** The court needs to verify the hypothecation deed to confirm the Financial Creditor's

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**Interpretation:** The Insolvency & Bankruptcy Code allows secured creditors to realize their

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**Application:** The court adjourned the hearing to allow the Financial Creditor to file the

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## Parties

- **Judges:** Ina Mal…
- **Respondents:** M/s. Kandla…; satkar Container…

## Timeline

- **2019-07-05 — Hearing…**: Hearing before the New Delhi bench of…
- **2019-07-17 — Adjournmen…**: Case adjourned to July 17, 2019,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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