# In the matter of Punjab National Bank & Anr. Vs. Ajmer Singh Bhullar & Ors. M.A. No. 873 of 2019 in Civil Appeal No. 9973 of 2018

> SC judgment dated 2019-08-09. Citation: TCN-2019-SC-00040. The case involves a dispute regarding the eviction of promoter directors from a corporate debtor's…

- **Court:** SC
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-SC-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/punjab-national-bank-anr-vs-ajmer-singh-bhullar-ors-ma-no-873-of-2019-in-civil-a-7c51c919

## Summary

### Background

The case involves a dispute regarding the eviction of promoter directors from a corporate debtor's property during its winding-up process. The Supreme Court had previously ordered that the promoter directors should not be evicted until necessary and that they should cooperate with the Resolution Professional. However, it was brought to the court's attention that the promoter directors were abusing the privilege granted by the court, particularly based on a reading of press releases dated October 27th and 29th, 2018.

## Facts

The Supreme Court addressed a situation where promoter directors of a corporate debtor were allegedly abusing the privilege granted to them by the court during the winding-up process. The court had previously ordered that the directors should not be evicted until necessary and should cooperate with the Resolution Professional. However, information, including press releases dated October 27th and 29th, 2018, indicated that the directors were acting contrary to the court's order. The NCLT had also permitted Punjab National Bank to file a fresh application for eviction once the publication for the sale of assets began. The promoter directors, despite being served with the present M.A., chose not to appear before the court. This led the Supreme Court to direct their

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## Issues and analysis

### Issue 1: Whether the promoter directors of the corporate debtor abused the privilege granted to them by the …

**Ratio:** The legal principle is that parties must comply with court orders and not abuse

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**Reasoning:** The court reasoned that the promoter directors' actions, as evidenced by press releases

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**Interpretation:** This issue involves interpreting the scope of the court's previous order and

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**Application:** The court applied the principle of compliance with court orders to the specific

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## Parties

- **Judges:** ROHINTON FALI…; SURYA…
- **Appellants:** Punjab National…
- **Respondents:** AJMER SINGH…

## Timeline

- **2018-09-25 — Previous Cour…**: The Court recorded that a logical culmination must take place in a winding up of the…
- **2018-10-27 — Press Relea…**: Press Release indicating abuse of…

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