# In the matter of Sneha Sadan Traders and Agents Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01615. 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-01615
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sneha-sadan-traders-and-agents-limited-9bcb79e8

## 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 Corporate Insolvency Resolution Process (CIRP) was initiated against Sneh Sadan Traders and Agents Limited, and subsequently, liquidation was ordered. The Liquidator discovered that the Demat accounts of the Corporate Debtor were suspended due to non-compliance with SEBI regulations by Cox and Kings Financial Service Limited, a promoter of the Corporate Debtor. The Liquidator sought the Tribunal's direction to revoke the suspension on the Demat accounts to facilitate the liquidation process.

## 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 Insolvency and Bankruptcy Code (IBC), which was admitted on 22.10.2019. Alok Kumar Agarwal was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Subsequently, the Committee of Creditors approved the liquidation of the Corporate Debtor, which was allowed by the Tribunal on 05.07.2021, and Alok Kumar Agarwal was appointed as the Liquidator. The Liquidator discovered two Demat accounts in the Corporate Debtor's name but was unable to access them. Upon inquiry with the National Securities Depository Limited (NSDL), it was revealed

…

## Issues and analysis

### Issue 1: Whether the suspension of the Demat accounts of the Corporate Debtor by the National Stock Exchange …

**Ratio:** Section 14 of the IBC imposes a moratorium upon the commencement of CIRP, prohibiting any

…

**Reasoning:** The Tribunal reasoned that the suspension of the Demat accounts by NSE and BSE, which

…

**Interpretation:** The Tribunal interpreted Section 14 of the IBC to have a broad scope,

…

**Application:** The Tribunal applied the ratio to the facts of the case, noting that the

…

## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **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 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/sneha-sadan-traders-and-agents-limited-9bcb79e8