NCLT Dismisses SBI Applications on Liquidation Distribution

NCLT Chennai dismissed three applications filed by State Bank of India challenging the distribution of liquidation proceeds from Sri Venkatram Spinners.
SBI argued for equal distribution under Section 53 of IBC, while liquidator and Bank of Baroda defended distribution based on security interest priority.
The tribunal found SBI's applications suffered from delay and laches, and upheld the liquidator's distribution methodology recognizing inter-creditor agreements.
The order cited recent IBC Amendment Act 2026 clarifications supporting distribution based on security interest priority as legislative intent.