# Omkara Assets Reconstruction Private Limited vs. Amit Chaturvedi and Ors.

> SC judgment dated 2026-02-24. Citation: TCN-2026-SC-00074. The Stressed Assets Stabilization Fund (predecessor of the Appellant, Omkara Assets Reconstruction…

- **Court:** SC
- **Order date:** 24 Feb 2026
- **Citation:** TCN-2026-SC-00074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/omkara-assets-reconstruction-private-limited-vs-amit-chaturvedi-and-ors-03m2s

## Summary

### Background

The Stressed Assets Stabilization Fund (predecessor of the Appellant, Omkara Assets Reconstruction Private Limited) initiated Corporate Insolvency Resolution Proceedings (CIRP) against Respondent No.2 (the Corporate Debtor) before the Company Law Tribunal for the recovery of a substantial debt. Respondent No.2 resisted the CIRP, citing pending proceedings related to a Scheme of Arrangement (SOA) under Sections 391-394 of the Companies Act, 1956, before the Punjab and Haryana High Court. While the Adjudicating Authority initiated CIRP, the Company Law Appellate Tribunal subsequently kept the CIRP application in abeyance, pending the High Court's disposal of the SOA proceedings. The present appeal was filed before the Supreme Court, which had issued an interim order

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## Facts

The Stressed Assets Stabilization Fund (SASF), a financial institution, initiated Corporate Insolvency Resolution Proceedings (CIRP) against Respondent No.2 for the recovery of Rs.1,54,33,12,274/- (including future interest) on a principal of Rs.1,06,00,00,000/- disbursed via two term loans on 05.04.1999 and 12.12.2000, with default commencing from 01.01.2003.

Respondent No.2 resisted the CIRP application, citing pending proceedings related to a Scheme of Arrangement (SOA) under Sections 391-394 of the Companies Act, 1956, before the Punjab and Haryana High Court, and alleged suppression of this fact.

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## Issues and analysis

### Issue 1: Whether the Scheme of Arrangement (SOA) under Sections 391-394 of the Companies Act, 1956, is still …

**Ratio:** The Scheme of Arrangement (SOA) became defunct and inoperative due to the respondent's

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**Reasoning:** The respondent failed to file the second motion within the prescribed seven days of the

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**Interpretation:** Strict compliance with statutory timelines and procedural requirements under

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**Application:** The Court found that the SOA in this case was not feasible or operational due

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## Parties

- **Judges:** K. VINOD CH…; Sanjay…
- **Appellants:** Omkara Assets…; Stressed Assets…; +1 more
- **Respondents:** Respondent…; Amit Chat…
- **Other parties:** Respondent…; Stressed Assets…; +1 more
- **Advocates:** Neeraj Kish…; Purti G…; +1 more

## Timeline

- **1999-04-05 — First Term Loan…**: Principal amount of Rs.10,60,00,000/-…
- **2000-12-12 — Second Term Loan…**: Principal amount of Rs.10,60,00,000/-…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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