# In the matter of Mirage Ceramics Private Limited

> NCLT judgment dated 2024-02-28. Citation: TCN-2024-NCLT-02342. The Resolution Professional of Mirage Ceramics Private Limited filed an application seeking a…

- **Court:** NCLT
- **Order date:** 28 Feb 2024
- **Citation:** TCN-2024-NCLT-02342
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mirage-ceramics-private-limited-70e713c6

## Summary

### Background

The Resolution Professional of Mirage Ceramics Private Limited filed an application seeking a direction to Abhyudaya Co-operative Bank Limited to release share money of Rs. 15,00,000 along with accumulated dividend. The Corporate Debtor was admitted into CIRP on 14.02.2020, and the applicant was appointed as the Resolution Professional. The CoC was constituted on 11.03.2020. The Corporate Debtor holds 1,50,000 shares in Abhyudaya Co-operative Bank Limited. The Respondent Bank assigned the loan to M/s ARSEC India Limited. The applicant requested the bank to release the share money, but the bank refused.

## Facts

The Corporate Debtor, Mirage Ceramics Private Limited, was admitted into CIRP on 14.02.2020, with Bhaskar Gopal Shetty appointed as the Resolution Professional. The CoC was formed on 11.03.2020, including Kamlesh Mehta with a 56.86% voting share and Abhyudaya Co-operative Bank Limited with a 43.14% voting share. The Corporate Debtor held 1,50,000 shares of Rupees Ten each in Abhyudaya Co-operative Bank Limited. The Respondent Bank assigned the loan to M/s ARSEC India Limited. The Resolution Professional sought the release of Rs. 15,00,000 share money along with accumulated dividend, which the bank refused. The Corporate Debtor had availed credit facilities from Abhyudaya Bank, including a Cash Credit Facility of 1700 Lakhs and a Term Loan Facility of 300 Lakhs. The

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## Issues and analysis

### Issue 1: Whether the Resolution Professional is entitled to a refund of the share money amounting to …

**Ratio:** A secured creditor has a right of set-off as well as the right to realize its securities

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**Reasoning:** The NCLT reasoned that the security interest in the form of charge over the shares is

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**Interpretation:** This means that because the debt was assigned to ARSEC, ARSEC now holds the

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**Application:** Since ARSEC has a lien over the share money due to the assignment agreement,

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## Parties

- **Judges:** V. G. Bisht…; Prabhat…
- **Appellants:** Bhaskar Gopal…
- **Respondents:** Mirage Ceramics…; Abhyudaya…

## Timeline

- **2020-02-14 — Admission in…**: The Corporate Debtor, Mirage Ceramics…
- **2020-03-11 — CoC Consti…**: The Committee of…

## 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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