# In the matter of Shri Veerganapathi Steels Private Limited MA-1073-2019 in CP-229-IB-2018

> NCLT judgment dated 2021-06-04. Citation: TCN-2021-NCLT-02024. The Applicant, Kavitha Surana, Liquidator of M/s. Shri Veerganapathi Steels Private Limited,…

- **Court:** NCLT
- **Order date:** 4 Jun 2021
- **Citation:** TCN-2021-NCLT-02024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-veerganapathi-steels-private-limited-ma-1073-2019-in-cp-229-ib-2018-d681ccb2

## Summary

### Background

The Applicant, Kavitha Surana, Liquidator of M/s. Shri Veerganapathi Steels Private Limited, filed an Execution Application seeking to execute an order passed by the Tribunal on 2019-04-09 in MA/308/2019, directing the Respondent, Devmata Exim Private Limited, to pay Rs. 10,36,91,319/-. The Respondent challenged the order via appeal to NCLAT, which directed the Respondent to keep the amount in an Escrow Account. The Respondent then appealed to the Supreme Court, which dismissed the appeal on 2019-08-02. An appeal to NCLAT was also dismissed on 2019-08-05, thus the order of 2019-04-09 attained finality. The applicant filed the present application as the respondent failed to comply with the order.

## Facts

Kavitha Surana, the Liquidator of M/s. Shri Veerganapathi Steels Private Limited, initiated an execution application to enforce a previous order from the National Company Law Tribunal (NCLT) dated 2019-04-09. This order, issued in MA/308/2019, directed Devmata Exim Private Limited to pay Rs. 10,36,91,319/- to M/s. Shri Veerganapathi Steels Private Limited. Devmata Exim Private Limited challenged this order by appealing to the National Company Law Appellate Tribunal (NCLAT) and subsequently to the Supreme Court, both of which dismissed the appeals. Despite the finality of the NCLT order, Devmata Exim Private Limited failed to comply. Consequently, Kavitha Surana filed the present application seeking a Garnishee order to prohibit Devmata Exim Private Limited's debtors

…

## Issues and analysis

### Issue 1: Whether the Tribunal should pass a Garnishee order prohibiting the debtors of the Respondent from …

**Ratio:** The Tribunal has the power to issue Garnishee orders to ensure compliance with its orders

…

**Reasoning:** The Respondent failed to comply with the Tribunal's order despite the dismissal of

…

**Interpretation:** A Garnishee order is a legal mechanism that allows a court to direct a third

…

**Application:** The Tribunal applied the principle of Garnishee orders to the facts of the

…

## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Kavitha S…
- **Respondents:** Veerganapathi…; Devmata Exim…
- **Advocates:** S. Sathiyanarayana…; S. Venk…

## Timeline

- **2019-04-09 — Tribunal…**: The Tribunal directed the…
- **2019-05-06 — Appeal to…**: The Respondent appealed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/shri-veerganapathi-steels-private-limited-ma-1073-2019-in-cp-229-ib-2018-d681ccb2