Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 15 July 2026
Case Overview
This appeal filed by The Vishweshwar Sahakari Bank Ltd. Pune challenges an impugned order dated 10 June 2026 passed by the Learned Adjudicating Authority (NCLT). The case concerns the corporate debtor Pratibha Krushi Prakriya, which entered Corporate Insolvency Resolution Process (CIRP) on 2 August 2019 and subsequently went into liquidation on 2 February 2023.
The appellant bank had filed an application (IA No. 4943 of 2025) with the liquidator seeking permission to realize its security interest in certain assets of the corporate debtor that were mortgaged with the bank. This application was rejected by both the liquidator and the NCLT primarily on two grounds: first, that the application was not filed within the prescribed period as required under Regulation 21A(1) of the IBBI (Liquidation Process) Regulations, 2016; and second, that the bank failed to provide the value at which the security was to be realized as required under Regulation 37(1) of the same regulations.
The appellant's counsel argued that the bank could only proceed to realize its security interest under the SARFAESI Act or through Debt Recovery Tribunal (DRT) once permission was granted by the liquidator, for which they had duly applied.
Final Outcome
The NCLAT has admitted the appeal and scheduled it for hearing on 3 September 2026. The respondent liquidator has been given two weeks to file a formal reply, with the appellant having two subsequent weeks to file a rejoinder. Crucially, the tribunal ordered that any auction proceedings conducted by the liquidator shall be subject to the final outcome of this appeal.
Topics: Insolvency Proceedings, Security Interest Realization, Cooperative Bank Claims