2019 (6) TMI 1572 - SCH - SEBI

Supreme Court ruling upholds resolution professional's functions, stays NCLT directive on SEBI title deeds

The Supreme Court of India ruled in favor of the resolution professional, allowing them to continue their functions with a stay on the NCLT's directive ... Admissibility of petition - Appellant submitted that ‘Securities and Exchange Board of India’ having already taken action against the ‘Corporate Debtor’, the application u/s 7 was not maintainable - whether contesting Respondent is ‘Financial Creditor’ or not - Section 7 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Resolution professional may continue to perform his functions. Only grant stay of the direction of the NCLT in so far as it has directed SEBI to hand over the title deeds to the resolution professional. It is further made clear that the SEBI shall not in any manner create any encumbrance on the properties held by them by virtue of the title deeds. The Supreme Court of India ordered that the resolution professional can continue to perform functions, with a stay on NCLT's direction for SEBI to hand over title deeds. SEBI cannot create any encumbrance on the properties held by them. Counter affidavit to be filed within ten days, and the case listed for the week commencing from 8th July, 2019.