# In the matter of Sneha Sadan Traders and Agents Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01612. 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-01612
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sneha-sadan-traders-and-agents-limited-71f109a2

## 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 the Liquidator. The Liquidator discovered that the Demat accounts of the Corporate Debtor were suspended

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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. The CIRP was admitted on 22.10.2019, and the applicant was appointed as the Interim Resolution Professional (IRP) and subsequently as the 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 Cox and Kings Financial Service Limited and Tulip

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## Issues and analysis

### Issue 1: Whether the suspension of the Demat accounts of the Corporate Debtor by NSE and BSE during the CIRP …

**Ratio:** Section 14 of the IBC imposes a moratorium on the institution or continuation of suits or

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**Reasoning:** The court reasoned that the suspension of the Demat accounts during the moratorium period

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**Interpretation:** The court interpreted Section 14 of the IBC to mean that any action that

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Charanjeet Singh…; LAKSHMI G…
- **Appellants:** Alok Kumar…
- **Respondents:** Sneh Sadan…; Sneh Sadan…; +1 more

## 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 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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