# In the matter of Gupta Exim India Pvt. Ltd. IA No. 47-2020 and 581-2021 in CP (IB) No.312-Chd-Hry-2018

> NCLT judgment dated 2022-03-17. Citation: TCN-2022-NCLT-03672. The case involves two Interlocutory Applications (IA No. 47/2020 and 581/2021) in a Corporate…

- **Court:** NCLT
- **Order date:** 17 Mar 2022
- **Citation:** TCN-2022-NCLT-03672
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gupta-exim-india-pvt-ltd-ia-no-47-2020-and-581-2021-in-cp-ib-no312-chd-hry-2018-9e788584

## Summary

### Background

The case involves two Interlocutory Applications (IA No. 47/2020 and 581/2021) in a Corporate Insolvency Resolution Process (CIRP) initiated against M/s Gupta Exim (India) Pvt. Ltd. The CIRP was initiated by Oriental Bank of Commerce (now Punjab National Bank) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. IA No. 47/2020 was filed by the Resolution Professional seeking directions to Small Industries Development Bank of India (SIDBI) to hand over possession of assets belonging to the corporate debtor, which SIDBI had taken over prior to the commencement of CIRP. IA No. 581/2021 was filed by SIDBI, a dissenting financial creditor, seeking directions for distribution of the resolution plan proceeds, claiming priority as per Section 30(2)(b), 30(4), and

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## Facts

Punjab National Bank (formerly Oriental Bank of Commerce) initiated CIRP against M/s Gupta Exim (India) Pvt. Ltd. The application was admitted on 2019-10-29. SIDBI, a financial creditor, had extended financial facilities to the corporate debtor, who mortgaged two landed properties. Due to default, SIDBI issued a possession notice on 2017-01-10 and took physical possession of the mortgaged properties under Section 13(4) of the SARFAESI Act, 2002. The Resolution Professional requested SIDBI to hand over possession, which SIDBI refused, arguing that the moratorium under IBC does not affect existing rights. SIDBI filed a claim with the Resolution Professional for Rs. 12,95,33,923 on 2019-11-14. The Resolution Professional filed IA No. 47/2020 seeking possession of the

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## Issues and analysis

### Issue 1: Whether SIDBI is required to hand over possession of the assets belonging to the corporate debtor …

**Ratio:** Section 238 of the IBC, 2016 has an overriding effect over all other laws, including the

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**Reasoning:** The court relied on the judgment passed by Hon'ble NCLAT, New Delhi in Company Appeal

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**Interpretation:** Section 238 of the IBC gives the IBC an overriding effect over all other laws,

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**Application:** In this case, SIDBI had taken possession of the assets of the corporate debtor

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Punjab National…
- **Respondents:** M/s Gupta Exim…; M/s Gupta Exim…

## Timeline

- **2016-01-01 — IBC, 201…**: Enactment of the Insolvency…
- **2017-01-10 — Possession Notice by…**: SIDBI issued a possession notice and took physical possession of the corporate debtor's…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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