# Central Bank of India v. Ramesh Shah in Consortium with Masitia Capital Services Pvt. Ltd. and Ors.

> SC judgment dated 2025-01-06. Citation: TCN-2025-SC-00064. The case involves a civil appeal filed by Central Bank of India against the admission of a petition…

- **Court:** SC
- **Order date:** 6 Jan 2025
- **Citation:** TCN-2025-SC-00064
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/central-bank-of-india-v-ramesh-shah-in-consortium-with-masitia-capital-services-38d734db

## Summary

### Background

The case involves a civil appeal filed by Central Bank of India against the admission of a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, M/s. Etco Denim Private Limited. The Corporate Debtor was admitted into insolvency by the adjudicating authority. A Resolution Professional was appointed on 2020-02-14. During the insolvency proceedings, the Resolution Professional instructed an employee of the Corporate Debtor to apply for registration as a Micro, Small or Medium Enterprise (MSME) under the Micro, Small and Medium Enterprises Development Act, 2006. The appellant, Central Bank of India, objected to the Corporate Debtor being treated as an MSME, arguing that its asset value exceeded the prescribed norms. The MSME

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## Facts

Central Bank of India filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Etco Denim Private Limited. The adjudicating authority admitted the petition, initiating the Corporate Insolvency Resolution Process (CIRP). A Resolution Professional was appointed on 2020-02-14. During the CIRP, the Resolution Professional instructed an employee of Etco Denim Private Limited to apply for MSME registration. Etco Denim Private Limited obtained an MSME registration certificate on 2020-10-23. Central Bank of India objected to Etco Denim Private Limited being treated as an MSME, arguing that its asset value exceeded the prescribed norms. The bank contended that the MSME certification was wrongfully procured. The appellant filed an appeal before the

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## Issues and analysis

### Issue 1: Whether the appellant, Central Bank of India, should be permitted to challenge the validity of the …

**Ratio:** The court has the discretion to allow parties to pursue legal remedies in appropriate

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**Reasoning:** The court recognized that the validity of the MSME registration certificate was a

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**Interpretation:** This demonstrates the court's willingness to balance the need for efficient

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**Application:** The court applied this principle by permitting Central Bank of India to file a

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## Parties

- **Judges:** THE CHIEF J…; Sanjay…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Etco Denim…; RAMESH SHAH IN…
- **Other parties:** MSME Registration…; Scope of Section…; +1 more

## Timeline

- **2020-02-14 — Resolution Professional…**: A Resolution Professional was…
- **2020-06-01 — Gazette Notif…**: Gazette Notification No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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