# In the matter of Worlds Window Impex Pvt. Ltd. I.A. No. 1273-(ND)-2021 Connected with IB-376(ND)-2020

> NCLT judgment dated 2021-07-27. Citation: TCN-2021-NCLT-01590. The case involves an application filed by M/s World Window Impex Pvt. Ltd. (Corporate Debtor)…

- **Court:** NCLT
- **Order date:** 27 Jul 2021
- **Citation:** TCN-2021-NCLT-01590
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/worlds-window-impex-pvt-ltd-ia-no-1273-nd-2021-connected-with-ib-376nd-2020-289ef27d

## Summary

### Background

The case involves an application filed by M/s World Window Impex Pvt. Ltd. (Corporate Debtor) seeking a direction to State Bank of India (Financial Creditor/Respondent) to prevent them from taking over possession of the Corporate Debtor's premises and from taking any coercive action during the pendency of the petition. The main matter, IB NO. 376/(ND)/2020, is pending adjudication before the NCLT. The applicant received a notice from Karan Kaushal, appointed by the CMM Saket Courts, Delhi, as court receiver, to take physical possession of the Corporate Debtor's assets under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

## Facts

State Bank of India initiated insolvency proceedings against M/s World Window Impex Pvt. Ltd. under the Insolvency and Bankruptcy Code (IBC), 2016. The main petition under Section 7 of the IBC is pending adjudication. M/s World Window Impex Pvt. Ltd. filed an application (I.A. No. 1273/(ND)/2021) seeking to restrain State Bank of India from taking over possession of the corporate debtor's premises. A court-appointed receiver, Karan Kaushal, issued a notice to M/s World Window Impex Pvt. Ltd. to take physical possession of the corporate debtor's assets under the SARFAESI Act, 2002, based on an order from the CMM Saket Courts, Delhi. The applicant argued that allowing the takeover would render the corporate insolvency resolution process impossible. The financial creditor

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## Issues and analysis

### Issue 1: Whether the Financial Creditor can proceed under the SARFAESI Act when the main petition under …

**Ratio:** Section 238 of the IBC states that the provisions of the IBC shall have effect

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**Reasoning:** The court reasoned that since the main petition under Section 7 of the IBC had not been

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**Interpretation:** The interpretation is that until the insolvency process is formally initiated

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**Application:** In this case, because the Section 7 petition was still pending and no

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## Parties

- **Judges:** SH. P.S.N.…; Sh. Hemant Kumar…
- **Appellants:** M/s World Window…
- **Respondents:** M/s WORLD WINDOW…; State Bank of…

## Timeline

- **2020-01-01 — IB NO. 376/(N…**: Main matter pending…
- **2020-08-10 — Order by CMM Saket…**: Order appointing Karan…

## 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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