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

> SC judgment dated 2026-02-24. Citation: TCN-2026-SC-00073. The Stressed Assets Stabilization Fund (SASF), a financial creditor, initiated Corporate Insolvency…

- **Court:** SC
- **Order date:** 24 Feb 2026
- **Citation:** TCN-2026-SC-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/omkara-assets-reconstruction-private-limited-vs-amit-chaturvedi-and-ors-fukkf

## Summary

### Background

The Stressed Assets Stabilization Fund (SASF), a financial creditor, initiated Corporate Insolvency Resolution Proceedings (CIRP) under Section 7 of the IBC against Respondent No.2 (the Corporate Debtor) due to a default on loans amounting to over Rs. 154 crores. Respondent No.2 resisted, citing a pending Scheme of Arrangement (SOA) under the Companies Act, 1956, before the Punjab and Haryana High Court. The Adjudicating Authority (Company Law Tribunal) initiated CIRP and appointed an Interim Resolution Professional (IRP). However, the Company Law Appellate Tribunal (NCLAT) stayed the CIRP application, keeping it in abeyance until the High Court proceedings were resolved. The appellant, Omkara Assets Reconstruction Private Limited (successor to SASF), challenged this

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## Facts

The Stressed Assets Stabilization Fund (SASF) initiated Corporate Insolvency Resolution Proceedings (CIRP) against Respondent No.2 for recovery of Rs.154,33,12,274/- (principal Rs.10,60,00,000/-) 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 claim citing pending proceedings with respect 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 proceedings under the Companies Act, 1956, regarding a Scheme of Arrangement (SOA) …

**Ratio:** The pendency of a defunct and non-compliant Scheme of Arrangement (SOA) under the

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**Reasoning:** The Court found that the SOA was defunct due to gross delay and non-compliance with

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**Interpretation:** The Court interprets the 'moot question' of judicial impropriety vis-a-vis

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**Application:** The Court applied this principle to set aside the Appellate Tribunal's order

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## Parties

- **Judges:** K. VINOD CHANDRAN,…; SANJAY KU…
- **Appellants:** Omkara Assets…; Stressed Assets…
- **Respondents:** Respondent…; Amit Chaturvedi…
- **Other parties:** Amit Chat…; Industrial…; +1 more
- **Advocates:** Neeraj Kish…; Purti G…; +1 more

## Timeline

- **1999-04-05 — First Term Loan…**: Principal amount of Rs.10,60,00,000/- disbursed by way of two term loans, with the first…
- **2000-12-12 — Second Term Loan…**: Principal amount of Rs.10,60,00,000/- disbursed by way of two term loans, with the second…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230(1) — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

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