# In the matter of Aditya Bhatnagar & Ors. vs. Bank of Baroda & Ors.

> NCLT judgment dated 2025-06-23. Citation: TCN-2025-NCLT-00876. The Applicants filed an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Jun 2025
- **Citation:** TCN-2025-NCLT-00876
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/aditya-bhatnagar-ors-vs-bank-of-baroda-ors-c1632ab3

## Summary

### Background

The Applicants filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions to declare the auction sale of mortgaged property by Bank of Baroda as illegal and fraudulent, to compensate the Corporate Debtor, and to protect the mortgaged property.

## Facts

The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to declare the auction sale conducted by Bank of Baroda as void.

The applicants sought directions to protect the Corporate Debtor's assets and a status quo order on the property.

The Corporate Debtor is under Corporate Insolvency Resolution Process (CIRP) vide order dated 24.03.2025.

The Corporate Debtor and Applicants availed credit facilities from Bank of Baroda.

The property in question was owned by Applicant No. 5, Sheela Bhatnagar, and was mortgaged to secure the credit facilities.

The auction sale was challenged by the Applicants and the Corporate Debtor in a Securitisation Application before the Debt Recovery Tribunal (DRT), Jabalpur, which was dismissed.

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## Issues and analysis

### Issue 1: Whether the applicants have the locus …

**Ratio:** The applicants lack locus standi

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**Reasoning:** The property in question is not an asset of the Corporate Debtor, and its sale does not

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**Interpretation:** Section 60(5) of the IBC empowers the Tribunal to adjudicate matters arising

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**Application:** Since the dispute concerns personal property rights and not the CIRP, the

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Aditya Bha…; Abhinav Bha…; +3 more
- **Respondents:** Extol Industries…; Bank of B…; +5 more
- **Advocates:** Rajat Kumar…

## Timeline

- **2025-05-07 — Application…**: Application filed by the Applicants under Section 60(5) of The Insolvency and Bankruptcy…
- **2023-01-24 — Auction…**: Auction sale conducted by…

## 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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