# Mohammed Enterprises (Tanzania) Ltd. v. Farooq Ali Khan & Others

> SC judgment dated 2025-01-03. Citation: TCN-2025-SC-00065. The case involves appeals against the judgment of the High Court of Karnataka, which exercised its…

- **Court:** SC
- **Order date:** 3 Jan 2025
- **Citation:** TCN-2025-SC-00065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/mohammed-enterprises-tanzania-ltd-vs-farooq-ali-khan-ors-71feb056

## Summary

### Background

The case involves appeals against the judgment of the High Court of Karnataka, which exercised its power of judicial review to interdict Corporate Insolvency Resolution Process (CIRP). The CIRP culminated in the acceptance of a resolution plan by the Committee of Creditors (CoC) in a meeting held on 11.02.2020. There are three appeals: one by the successful resolution applicant Mohammed Enterprises (Tanzania) Ltd (METL), another by the Bank comprising the Committee of Creditors, and the third by the Resolution Professional appointed to conduct CIRP against Associate Decor Ltd ("Corporate Debtor"). The High Court had set aside the resolution plan, leading to the current appeals before the Supreme Court.

## Facts

The Corporate Insolvency Resolution Proceedings (CIRP) were initiated against Associate Decor Ltd (“Corporate Debtor”) on 26.10.2018, at the instance of Oriental Bank of Commerce (later merged with Punjab National Bank). Following the issuance of the Information Memorandum under Section 29 of the IBC, Mohammed Enterprises (Tanzania) Ltd (METL) submitted an expression of interest. Resolution plans were discussed in the 16th, 17th, and 18th meetings of the Committee of Creditors (CoC). The 19th CoC meeting was adjourned to 11.02.2020, where the appellant was asked to incorporate certain items. A director of the corporate debtor, Mr. Sachin Misal, representing the suspended director, Mohd. Farouk Darvesh, confirmed no objection to the plans or the process. The CoC

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## Issues and analysis

### Issue 1: Whether the High Court was justified in exercising its jurisdiction under Article 226 of the …

**Ratio:** The Supreme Court has consistently held that the High Court should be cautious in

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**Reasoning:** The Supreme Court reasoned that the High Court's interference disrupted the CIRP

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**Interpretation:** The interpretation of Article 226 in the context of the IBC suggests that the

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**Application:** In this case, the High Court's intervention was deemed inappropriate because

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## Parties

- **Judges:** Pamidighantam Sri…; Manoj M…
- **Appellants:** MOHAMMED ENTERPRIS…
- **Respondents:** Associate Decor…; FAROOQ AL…
- **Other parties:** 8th Edition…; Article…; +16 more

## Timeline

- **2018-10-26 — CIRP Commen…**: Corporate Insolvency Resolution Proceedings (CIRP) initiated against Associate Decor Ltd…
- **2018-11-28 — Information Memorandum…**: Resolution professional issued the Information…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 29 — Preparation of information memorandum](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-29)

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