# In the matter of Kaygee Shoetech Private Limited

> NCLT judgment dated 2023-11-29. Citation: TCN-2023-NCLT-00535. Axis Bank Limited, a secured Financial Creditor of Kaygee Shoetech Private Limited (Corporate…

- **Court:** NCLT
- **Order date:** 29 Nov 2023
- **Citation:** TCN-2023-NCLT-00535
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kaygee-shoetech-private-limited-96dc1011

## Summary

### Background

Axis Bank Limited, a secured Financial Creditor of Kaygee Shoetech Private Limited (Corporate Debtor), filed an application (IA(IBC)/1854(KB)2023) under section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking permission to enforce its security interest under the SARFAESI Act, 2002. The Corporate Debtor was ordered for liquidation on 2021-10-25. Axis Bank had filed its claims with the Liquidator, asserting that it would not relinquish its security interest. The Liquidator had taken physical possession of the assets on 2022-03-01. Axis Bank attempted to sell the assets through e-auctions on multiple dates but received an expression of interest on 2023-10-16 for one immovable asset, with a Demand Draft issued in their favor.

## Facts

Axis Bank Limited, being the sole secured Financial Creditor to Kaygee Shoetech Private Limited (Corporate Debtor), initiated an application IA(IBC)/1854(KB)2023 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking permission to enforce its security interest under the SARFAESI Act, 2002. The Corporate Debtor was ordered for liquidation by the Adjudicating Authority on 2021-10-25. Axis Bank filed its claims with the Liquidator, stating it would not relinquish its security interest. The Liquidator took physical possession of the assets on 2022-03-01. Axis Bank attempted to sell the assets through e-auctions on 2022-06-18, 2022-11-16, 2022-12-23, 2023-02-28, 2023-04-08, 2023-05-27, 2023-06-16 and 2023-09-21. On 2023-10-16, Axis Bank received an

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## Issues and analysis

### Issue 1: Whether the application IA(IBC)/1854(KB)2023 filed by Axis Bank Limited to enforce its security …

**Ratio:** The principle of res judicata and the need for judicial consistency dictate that a matter

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**Reasoning:** The court reasoned that it had already addressed the issue of asset possession in

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**Interpretation:** The interpretation of Section 60(5) of the IBC, read with Rule 11 of the NCLT

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**Application:** The court applied the principle by recognizing that the prior order in

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** Axis Bank L…
- **Respondents:** Kaygee Shoetech…; Pankaj Kuma…

## Timeline

- **2021-10-25 — Liquidation…**: The Corporate Debtor, Kaygee Shoetech Private Limited, was ordered for liquidation by the…
- **2022-03-01 — Physical Pos…**: The Liquidator took physical possession…

## 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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