# In the matter of Surana Corporation Limited IA-IB-426-2020 in CP-550-IB-2018

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-04664. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-04664
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/surana-corporation-limited-ia-ib-426-2020-in-cp-550-ib-2018-167bc990

## Summary

### Background

The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with the National Company Law Tribunal Rules, 2016, by the Liquidator of the Corporate Debtor, Surana Corporation Limited, seeking relief related to the attachment of the Corporate Debtor's property by the Tax Recovery Officer prior to the commencement of the Corporate Insolvency Resolution Process (CIRP).

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Surana Corporation Limited commenced on October 5, 2018, based on an application filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The Tribunal appointed the Applicant as the Interim Resolution Professional and subsequently as the Resolution Professional and then as the Liquidator after the liquidation order dated October 25, 2019.

The Liquidator conducted an e-auction for the sale of the Corporate Debtor's assets on April 18, 2020.

Vinod Kumar Jain (1st Respondent) was declared the successful bidder for Rs.7,41,00,000/- in the e-auction held on May 20, 2020, and had deposited the Earnest Money Deposit (EMD) on May 12, 2020.

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## Issues and analysis

### Issue 1: Whether the attachment of the Corporate Debtor's property by the Tax Recovery Officer prior to the …

**Ratio:** Section 36(3)(b) of the IBC states that the assets of the Corporate Debtor, even if

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**Reasoning:** The Tribunal relied on the provisions of the IBC, which stipulate that the assets of the

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**Interpretation:** The attachment cannot act as a bar for completion of the prospective sale of

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**Application:** The Tribunal held that the attachment by the Tax Recovery Officer does not

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** Chandramouli…
- **Respondents:** M/s. Surana…; Vinod Kuma…; +2 more
- **Other parties:** State Bank of…
- **Advocates:** Vipin Wa…; Rahul K…; +1 more

## Timeline

- **2017-09-01 — Attachment by Tax…**: The Tax Recovery Officer attached…
- **2018-10-05 — CIRP Commen…**: The Corporate Insolvency Resolution Process (CIRP) of Surana Corporation Limited…

## 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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