# In the matter of Kaygee Shoetech Private Limited

> NCLT judgment dated 2023-11-15. Citation: TCN-2023-NCLT-00736. This case involves an application under Section 35(1)(n) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Nov 2023
- **Citation:** TCN-2023-NCLT-00736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kaygee-shoetech-private-limited-9cefba53

## Summary

### Background

This case involves an application under Section 35(1)(n) of the Insolvency and Bankruptcy Code, 2016, filed by the liquidator of Kaygee Shoetech Private Limited against Axis Bank Limited. The liquidator sought directions for Axis Bank to hand over possession of secured assets of the Corporate Debtor to form part of the liquidation estate and to pay the liquidation cost on a proportionate basis. Axis Bank, being a secured creditor, had filed its claim and decided to realize the same under Section 52 of the Code under the provisions of the SARFAESI Act, 2002. The liquidator contended that Axis Bank failed to sell the immovable assets despite several publications and also failed to comply with Regulation 21 A of IBBI (Liquidator Process) Regulations, 2016.

## Facts

K. B. Polychem (India) Ltd. is the Operational Creditor. Kaygee Shoetech Private Limited is the Corporate Debtor undergoing Corporate Insolvency Resolution Process. Pankaj Kumar Kedia is the Liquidator for Kaygee Shoetech Private Limited. Axis Bank Limited is the Respondent and a secured creditor. All assets of the Corporate Debtor are mortgaged with Axis Bank, creating a security interest. Axis Bank filed a claim in Form D on 09.12.2021 and decided to realize it under Section 52 of the Code, following SARFAESI Act, 2002. The liquidator handed over possession of secured assets to Axis Bank on 01.03.2022. Axis Bank made several attempts to sell the assets between 29.07.2022 and 21.09.2023 but failed. The liquidation commenced on 25.10.2021, and a public announcement was

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## Issues and analysis

### Issue 1: Whether Axis Bank, as a secured creditor, complied with the provisions of Regulation 21 A of the …

**Ratio:** Regulation 21 A of the IBBI (Liquidation Process) Regulations, 2016, mandates specific

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**Reasoning:** The court noted that Axis Bank failed to carry out any sale in terms of Sub-Regulation

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**Interpretation:** The regulation requires secured creditors to act within specified timelines to

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**Application:** Since Axis Bank failed to sell the assets and make the required payments within

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## Parties

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

## Timeline

- **2021-10-25 — Liquidation Com…**: Liquidation commenced for…
- **2021-11-10 — Public Annou…**: Public announcement made in Form B of Schedule II in Financial Express and Aajkal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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