# In the matter of Sneha Sadan Traders and Agents Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01632. The case involves an application filed by the Liquidator of Sneh Sadan Traders and Agents…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01632
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sneha-sadan-traders-and-agents-limited-3acf44eb

## Summary

### Background

The case involves an application filed by the Liquidator of Sneh Sadan Traders and Agents Limited against the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE). The Liquidator sought the revocation of the suspension placed on the Demat accounts of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against Sneh Sadan Traders and Agents Limited, and the applicant was appointed as the Interim Resolution Professional (IRP) and subsequently as the Resolution Professional (RP). Later, the Committee of Creditors approved the liquidation of the Corporate Debtor, and the applicant was appointed as Liquidator. The Liquidator discovered that the Demat accounts of the Corporate Debtor were suspended due

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## Facts

Rattan India Finance Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Sneh Sadan Traders and Agents Limited (“Corporate Debtor”) under Section 7 of the IBC, which was admitted on 22.10.2019. The applicant was appointed as Interim Resolution Professional (IRP) and later as Resolution Professional (RP). The Committee of Creditors approved the liquidation of the Corporate Debtor, which was allowed by the Tribunal on 05.07.2021, and the applicant was appointed as Liquidator. The Liquidator found that the Corporate Debtor had Demat accounts with IIFL Securities Ltd. and Yes Bank Ltd., which were suspended. The suspension was due to non-compliance with SEBI regulations by promoters/promoter groups, including Cox and Kings Financial Service

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction under Section 60(5) of the IBC to entertain the application …

**Ratio:** Section 60(5) of the IBC provides that the NCLT has jurisdiction to entertain or dispose

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**Reasoning:** The court relied on the judgment of the Supreme Court in Gujrat Urja Vikas Nigam Limited

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**Interpretation:** Section 60(5) of the IBC is interpreted broadly to confer jurisdiction on the

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**Application:** The court applied the ratio to the facts of the case and held that the NCLT had

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## Parties

- **Judges:** Charanjeet Singh…; LAKSHMI G…
- **Appellants:** Alok Kumar…
- **Respondents:** Sneh Sadan…; National Stock…

## Timeline

- **2019-10-22 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Sneh Sadan Traders and…
- **2019-10-22 — Moratorium…**: Moratorium imposed under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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