# In the matter of Shrenuj & Company Ltd.

> NCLT judgment dated 2024-02-01. Citation: TCN-2024-NCLT-02806. ICICI Bank Limited filed an Interlocutory Application under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Feb 2024
- **Citation:** TCN-2024-NCLT-02806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shrenuj-company-ltd-93eb7334

## Summary

### Background

ICICI Bank Limited filed an Interlocutory Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions against Respondent No. 1 (Mr. Hiten Mukundbhai Parikh, the Resolution Professional) to take immediate physical possession of seized assets lying in the Applicant's premises and to reimburse the Applicant for costs incurred for safe keeping of the seized assets during the CIRP period and thereafter. The assets of the Corporate Debtor, Shrenuj & Co. Ltd., were seized at the behest of the Applicant after the Applicant filed an OA before the DRT Mumbai for recovery of its outstanding dues. The Corporate Debtor was admitted into Insolvency under Section 7 of the IB Code on 12.03.2019, following which Respondent No. 1 was appointed as

…

## Facts

ICICI Bank Limited initiated recovery proceedings against Shrenuj & Co. Ltd. before the Debt Recovery Tribunal (DRT) by filing OA No. 407 of 2016, including an application for the appointment of a receiver. The DRT appointed Respondent No. 2 as Court Receiver on 15.06.2016, and subsequently, Respondent No. 3 was also appointed as receiver by DRT-1. The receivers took possession of the Corporate Debtor's assets between 23.06.2016 and 24.06.2016. The Corporate Debtor was admitted into Insolvency under Section 7 of the Insolvency and Bankruptcy Code (IBC) on 12.03.2019, and Respondent No. 1 was appointed as the Resolution Professional (RP) on 27.05.2019. The Applicant (ICICI Bank) claimed reimbursement of Rs. 6,42,505/- for safe keeping of the seized assets from

…

## Issues and analysis

### Issue 1: Whether the Applicant (ICICI Bank) is entitled to reimbursement of costs incurred for the safe …

**Ratio:** The costs, fees, and/or expenses incurred by the receiver shall be borne by the Applicant

…

**Reasoning:** The Tribunal reasoned that the assets were seized under the orders of the DRT, and the RP

…

**Interpretation:** The legal principle is that the party who initiated the process leading to the

…

**Application:** In this case, ICICI Bank initiated the recovery proceedings before the DRT,

…

## Parties

- **Judges:** Kuldip Kumar…; ANIL RAJ C…
- **Appellants:** ICICI Bank…
- **Respondents:** Shrenuj & C…; Hiten Mukundbhai…

## Timeline

- **2016-06-15 — Appointment of Court…**: Respondent No. 2 appointed…
- **2019-03-12 — Admission into…**: Corporate Debtor admitted into…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shrenuj-company-ltd-93eb7334