# In the matter of Saubhagya Ornaments Private Limited

> NCLT judgment dated 2024-02-26. Citation: TCN-2024-NCLT-02397. The case involves an application by Ms. Shalu Khanna, the liquidator of M/s. Saubhagya…

- **Court:** NCLT
- **Order date:** 26 Feb 2024
- **Citation:** TCN-2024-NCLT-02397
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saubhagya-ornaments-private-limited-a7d443b6

## Summary

### Background

The case involves an application by Ms. Shalu Khanna, the liquidator of M/s. Saubhagya Ornaments Private Limited, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions against Advantech India Private Limited (Respondent No.1) to issue fresh and rectified preference share certificates in the name of the Corporate Debtor. The liquidator also sought orders to allow the redemption of 20,00,000 9% Non-Cumulative Redeemable Preference Shares held by the Corporate Debtor in Respondent No.1 Company, in compliance with Section 55 of the Companies Act, 2013. The application arises from liquidation proceedings initiated against Saubhagya Ornaments Private Limited by an order dated 26.07.2021.

## Facts

Ms. Shalu Khanna, the liquidator of M/s. Saubhagya Ornaments Private Limited ('Corporate Debtor'), filed an application against Advantech India Private Limited ('Respondent No.1'), Satinder Singh Banga (‘Respondent No.2'), and Hardeep Singh Banga (‘Respondent No.3'). The application pertains to 20,00,000 9% Non-Cumulative Redeemable Preference Shares ('NCRPS') held by the Corporate Debtor in Respondent No.1 Company. The liquidator sought orders directing Respondent No.1 to issue fresh and rectified preference share certificates and to allow the redemption of the shares. The liquidation proceedings against the Corporate Debtor were initiated on 26.07.2021. The applicant claims that Respondent No.1 unilaterally changed the terms of the NCRPS, violating the Companies Act,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to adjudicate disputes arising solely from …

**Ratio:** The Adjudicating Authority has jurisdiction to adjudicate disputes that arise solely from

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**Reasoning:** The court stated that it is a trite proposition of law that the Adjudicating Authority

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**Interpretation:** This principle establishes the scope of the Adjudicating Authority's

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**Application:** In this case, the court considered whether the applicant had demonstrated a

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## Parties

- **Judges:** SH. BACHU VENKAT…; DR.SANJEEV…
- **Appellants:** Shalu K…
- **Respondents:** Saubhagya…; Advantech India…

## Timeline

- **2015-03-20 — Offer Lette…**: Offer letter for Non-Cumulative…
- **2021-07-26 — Liquidation Proceedings…**: Liquidation proceedings initiated against M/s. Saubhagya Ornaments Private 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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