# SREI Equipment Finance Limited vs. Liquidator of Amar Remedies Limited & Ors.

> NCLT judgment dated 2026-08-12. Citation: TCN-2026-NCLT-00963. Two Interlocutory Applications (IAs) were before the National Company Law Tribunal (NCLT),…

- **Court:** NCLT
- **Order date:** 12 Aug 2026
- **Citation:** TCN-2026-NCLT-00963
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/srei-equipment-finance-limited-vs-liquidator-of-amar-remedies-limited-ors-mw41u

## Summary

### Background

Two Interlocutory Applications (IAs) were before the National Company Law Tribunal (NCLT), Mumbai Bench. IA 3468/2026 was filed by M/s ARCK Resolution Professionals LLP, the Liquidator of Amar Remedies Limited, to place on record the 9th Progress Report. IA 565/2025 was filed by SREI Equipment Finance Limited (Applicant) under Section 60(5) r/w Sections 52 and 53 of the Insolvency and Bankruptcy Code, 2016 (IBC). SREI challenged the Liquidator's decision to distribute liquidation asset proceeds, arguing it ignored Section 53 of the IBC and the principle of pari passu distribution for secured creditors who relinquished their security interest. SREI sought to set aside the distribution, recall excess distributed proceeds, and direct redistribution strictly pari passu.

## Facts

IA 3468/2026 was filed by M/s ARCK Resolution Professionals LLP, Liquidator of Amar Remedies Limited, to place on record the 9th Progress Report for the period quarterly ended on 31.06.2026.

IA 565/2025 was filed by SREI Equipment Finance Limited, Applicant, under Section 60(5) r/w Sections 52 and 53 of the Insolvency and Bankruptcy Code, 2016.

SREI Equipment Finance Limited sought to set aside the Liquidator's decision to distribute proceeds from liquidation assets, alleging it ignored Section 53 of the IBC and the principle of pari passu distribution for secured creditors who relinquished security interest.

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## Issues and analysis

### Issue 1: Whether the Liquidator's decision to distribute proceeds from liquidation assets, without adhering …

**Ratio:** The Liquidator's distribution method, which respects inter-se priority based on the value

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**Reasoning:** The NCLT noted that the pre-amended law was vague, leading to unintended consequences of

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**Interpretation:** Section 53(1)(b) of the IBC, particularly with the clarificatory Explanation,

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**Application:** The Liquidator's distribution sheet, which presumably respects the value of

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## Parties

- **Judges:** SH. PRABHAT…; SH. SUSHIL…
- **Appellants:** SREI Equipment…; M/s ARCK Resolutio…
- **Respondents:** Amar Remedies…; Liquidator of…; +1 more
- **Other parties:** Anil K…
- **Advocates:** Lokesh Pa…; Abhinav M…; +6 more

## Timeline

- **2026-08-12 — Order Sheet of…**: The date on which the order sheet of…
- **2026-06-31 — 9th Progress Report…**: The end date for the period covered by the 9th Progress Report filed by the Liquidator of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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