Authority: National Company Law Tribunal, Ahmedabad Bench (Count-2)

Order Date: 16/06/2026

Case Overview

The National Company Law Tribunal (NCLT) Ahmedabad bench heard Interim Application No. IA/125(AHM)2024 in the main insolvency petition CP(IB) 164 of 2017 filed by Allahabad Bank against corporate debtor Sai Infosystem (India) Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC). The proceedings involve a dispute between State Bank of India (as secured creditor), the Enforcement Directorate (ED), and the liquidator regarding a property charge under the Prevention of Money Laundering Act (PMLA).

SBI had initiated proceedings before the Hon'ble High Court of Gujarat challenging the ED's PMLA order that created a charge on the property. During the NCLT hearing, SBI's Deputy General Manager Mr. Prakash Singh Bist, present in person, acknowledged that SBI had already ceded its rights as a secured creditor to the liquidator and agreed that the liquidator should legally appear as the appellant rather than as a party in the High Court matter.

The Tribunal noted that the ED matter regarding the charge on the property remains undecided due to the pending appeal. SBI agreed to make necessary pleadings before the Hon'ble High Court at the next hearing scheduled for 25 June 2026.

Final Outcome

The NCLT issued several directives:

1. The liquidator (Mr. Parag Sheth) is directed to convene a meeting of the Stakeholders Consultation Committee (SCC) within 7 days to obtain necessary advice and confirmation in the minutes

2. The liquidator must file the necessary application as appellant in the matter before the Hon'ble High Court

3. The ED and liquidator are directed to resolve the matter amicably regarding possession of the property, pending the PMLA decision

4. The ED's counsel (Mr. Ankit Shah) is directed to file a written purshish (submission) of today's arguments within one week (not exceeding 2-3 pages)

5. The liquidator's counsel is directed to file compliance regarding developments in the matter by 03.07.2026 with copy to other parties

The matter is listed for further consideration on 06.07.2026.

Topics: Insolvency Proceedings, PMLA Dispute, Inter-Creditor Coordination