# In the matter of DR. P. Mahalingam  Vs. Muthoot Fincorp  Limited & Ors. ,Civil Appeal No(s). 3076-3077/2022

> SC judgment dated 2022-12-16. Citation: TCN-2022-SC-00001. The case involves an appeal filed by Dr. P. Mahalingam, the erstwhile Promoter/Director of Santosh…

- **Court:** SC
- **Order date:** 16 Dec 2022
- **Citation:** TCN-2022-SC-00001
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/dr-p-mahalingam-vs-muthoot-fincorp-limited-ors-civil-appeal-no-jefzy

## Summary

### Background

The case involves an appeal filed by Dr. P. Mahalingam, the erstwhile Promoter/Director of Santosh Hospital Private Limited (Corporate Debtor), against a common final judgment and order dated 14.02.2022 passed by the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi. The NCLAT upheld orders passed by the National Company Law Tribunal (NCLT), Chennai, which included an order for liquidation of the Corporate Debtor Company dated 04.12.2019 and an order dated 17.12.2020 for handing over possession of the hospital to the respondent No. 1, the Financial Creditor of the Corporate Debtor. The appeal is filed under Section 62 of the Insolvency and Bankruptcy Code, 2016 (IBC).

## Facts

Dr. P. Mahalingam, the former Promoter/Director of Santosh Hospital Private Limited, filed an appeal against the liquidation order of the Corporate Debtor. The National Company Law Tribunal (NCLT), Chennai, had ordered the liquidation on 04.12.2019 and the handover of the hospital to the Financial Creditor (respondent No. 1) on 17.12.2020. The National Company Law Appellate Tribunal (NCLAT) upheld these orders on 14.02.2022. The appellant argues against the liquidation, citing the objectives of the IBC. The respondents contend that SARFAESI proceedings have attained finality, and the hospital is not the Corporate Debtor's property. The appellant made offers to pay the respondent No. 1, improving the offers over time, with the latest offer being Rs. 10 crore. The

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## Issues and analysis

### Issue 1: Whether the liquidation order of the Corporate Debtor Company, Santosh Hospital Private Limited, …

**Ratio:** The court considers the totality of the circumstances and the objections raised by the

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**Reasoning:** The court acknowledges the arguments made by both the appellant and the respondents but

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**Interpretation:** The court interprets the IBC provisions related to liquidation and resolution,

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**Application:** The court allows the appellant an opportunity to use the hospital building,

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## Parties

- **Judges:** DINESH MAHE…; Hrishikes…
- **Appellants:** P. MAHAL…
- **Respondents:** Santosh Hospitals…; MUTHOOT FINCORP…
- **Other parties:** Affir…

## Timeline

- **2019-12-04 — NCLT Ord…**: National Company Law Tribunal (NCLT), Chennai, passed an order for liquidation of the…
- **2020-12-17 — NCLT Ord…**: National Company Law Tribunal (NCLT), Chennai, passed an order for handing over…

## 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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