Authority: National Company Law Tribunal, Ahmedabad Bench (Court 2)
Order Date: 06/07/2026
Case Overview
This proceeding arises from CP(IB) 164 of 2017, an insolvency application filed by Allahad Bank against Sai Infosystem (India) Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC). The matter before the tribunal was IA/125(AHM)2024, concerning asset possession issues in the liquidation process. The Enforcement Directorate (ED) reported compliance with previous tribunal orders, confirming that meetings were conducted with the liquidator and stating they have no objection to the liquidator holding charge of the assets until the matter is decided by the PMLA court. The liquidator reported that State Bank of India has withdrawn its case filed before the Hon'ble High Court, and the liquidator has appeared before the PMLA Court as a party. A significant issue emerged as the suspended management of Sai Infosystem has refused to hand over possession of the property despite the ED's release/no objection.
Final Outcome
The NCLT bench comprising Member (Judicial) Mrs. Chitra Hankare and Member (Technical) Dr. Velamur G Venkata Chalapathy issued specific directives: (1) The liquidator is directed to file an appropriate application before the PMLA court after taking necessary approval of the Stakeholders Consultation Committee (SCC) regarding the suspended management's objections to handing over possession; (2) The liquidator is prohibited from selling the assets until the matter is decided by the adjudicating authority, given the ED's consent in the matter; (3) The liquidator must take necessary steps within one week to take possession of the property; (4) The liquidator must file an appropriate affidavit before the tribunal regarding these actions. The matter has been listed for further consideration on 22/07/2026.
Topics: Insolvency Proceedings, Asset Possession, PMLA Compliance