# In the matter of SREI Infrastructure Finance Limited Contempt Application No. 05-KB-2022 in I.A. (IB) No. 75-KB-2022 in C.P. (IB) No. 295-KB-2021

> NCLT judgment dated 2022-05-17. Citation: TCN-2022-NCLT-04807. The case involves a contempt petition filed by Hemant Kanoria, a shareholder and former…

- **Court:** NCLT
- **Order date:** 17 May 2022
- **Citation:** TCN-2022-NCLT-04807
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/srei-infrastructure-finance-limited-contempt-application-no-05-kb-2022-in-ia-ib-ea096a15

## Summary

### Background

The case involves a contempt petition filed by Hemant Kanoria, a shareholder and former director of SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL), against several respondents, including Punjab & Sind Bank, UCO Bank, Axis Bank, and KPMG, for allegedly violating an order of the Adjudicating Authority. The applicant sought to set aside the appointment of KPMG for forensic audit and restrain banks from proceeding with the audit process.

## Facts

Hemant Kanoria, a shareholder and former director of SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL), filed a contempt petition.

The petition alleged violation of an order dated 07 February 2022 passed by the Adjudicating Authority.

The respondents included Punjab & Sind Bank, UCO Bank, Axis Bank, and KPMG Assurance and Consulting Services LLP.

The applicant sought to set aside the appointment of KPMG for forensic audit and restrain banks from proceeding with the audit process.

SIFL and SEFL are under Corporate Insolvency Resolution Process (CIRP) from 08 October 2021.

BDO India LLP was appointed as the transaction auditor of SEFL and SIFL under the Code on 02 November 2021.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has jurisdiction to stop an audit commissioned under RBI …

**Ratio:** The Adjudicating Authority lacks jurisdiction to stop an audit commissioned under RBI

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**Reasoning:** The IBC and RBI circulars operate in different fields and for different purposes. The

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**Interpretation:** The Adjudicating Authority's jurisdiction is limited to matters pertaining to

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**Application:** The Adjudicating Authority cannot interdict any further steps based on the KPMG

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Hemant Ka…
- **Respondents:** SREI Infrastructur…; SREI Equipment…; +9 more
- **Advocates:** Ratnanko B…; Rishav Ba…; +15 more

## Timeline

- **2021-03-23 — Appointment…**: Axis Bank Limited and UCO Bank…
- **2021-10-08 — Commencement…**: SIFL and SEFL are under Corporate…

## 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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