# In the matter of Siddhi Vinayak Logistic Ltd.

> NCLT judgment dated 2024-01-16. Citation: TCN-2024-NCLT-03041. The case involves an application filed by DRS Warehousing (North) Pvt Ltd under Section 60(5)…

- **Court:** NCLT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLT-03041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siddhi-vinayak-logistic-ltd-9ae5c3c9

## Summary

### Background

The case involves an application filed by DRS Warehousing (North) Pvt Ltd under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions to the Office of Sub Registrar to register a sale deed for a property purchased in an e-auction conducted during the liquidation process of Siddhi Vinayak Logistics Ltd. (SVLL). The Enforcement Directorate (ED) had previously attached the property due to alleged money laundering offenses by SVLL, leading to the Sub Registrar's refusal to register the sale deed. The applicant sought registration of the sale deed, arguing that IBC provisions override the Prevention of Money Laundering Act (PMLA), 2002.

## Facts

A liquidation order was passed against Siddhi Vinayak Logistics Private Limited (SVLL) on 2018-11-19. The liquidator, Mr. Dushyant Dave, published an advertisement on 2021-10-19 for the sale of multiple properties, including land Survey/Khasara No. 341. DRS Warehousing (North) Pvt Ltd participated in the e-auction and was declared the highest bidder for Rs. 2,70,12,871. After paying the entire consideration, DRS Warehousing sought to execute a sale deed, but the Sub-Registrar informed them on 2022-01-28 that the Enforcement Directorate (ED) had issued directions on 2017-04-10 not to allow the creation of any third-party interest in the property without NOC from the ED. DRS Warehousing requested the ED to issue a no-objection certificate, but the ED did not comply. The

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction to direct the registration of a sale deed for a property attached …

**Ratio:** The ratio is based on the principle that the Insolvency and Bankruptcy Code (IBC) has an

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**Reasoning:** The court reasoned that once the Corporate Insolvency Resolution Process (CIRP) is

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**Interpretation:** Section 238 of the IBC is interpreted to mean that the IBC's provisions take

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**Application:** The court applied this ratio to the specific facts by noting that the

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** DRS Warehousing…
- **Respondents:** Siddhi Vinayak…; Office of Sub…

## Timeline

- **2017-04-10 — ED Issues Dir…**: The Directorate of Enforcement issued directions not to allow the creation of any…
- **2017-09-12 — CIRP Init…**: Corporate Insolvency Resolution Process of the Corporate Debtor was instituted by the…

## 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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