Idbi Bank Limited vs Silver Stallion Limited Consortium ...

IDBI Bank Ltd. ...Appellant(s)

Versus

Silver Stallion Ltd., ...Respondent(s) (Consortium with Vikasa India EIF I Fund and AIG Direct LLC) & Anr. Present: For Appellant : Mr. Rishi Thakural, Ms. Prachi Johri, Ms. Dhwani Gala, Ms. Mrigangi Parul, Advocates For Respondent :

ORDER

(Hybrid Mode)

31.10.2025: This appeal is preferred by the Financial Creditor who has

approached this Tribunal having felt aggrieved by a blanket concession

order passed by the Adjudicating Authority in an application filed by the

Successful Auction Purchaser in a liquidation proceeding in I.A. No. 4424 of

2024.

2. The facts fall within the very narrow campus. The CD to whom the

appellant has advanced loans to the tune of about Rs. 428 Crores, has gone

in for liquidation pursuant to the orders of the Adjudicating Authority. The

assets of the CD were brought to auction at the instance of the respondent

herein, and was sold to the auction purchaser as a going concern & the

appellant was paid around Rs. 7 Crores as against its claims.

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3. It is in these circumstances the Successful Auction Purchaser had

approached the Adjudicating Authority, seeking a list of 21 concessions, out

of which concession sought in S No. 17 is critical and it runs as follows;

"......All accounts of the Corporate Debtor shall stand regularized and -heir asset classifications shall be "standard".

4. The Learned counsel for the appellant submitted that the appellant

has discharged its charge over the secured-assets and also has issued the

NOC dated 19.04.2025. However, the fact of the order passed by the

Adjudicating Authority requires de-classification of the account of the CD

from NPA to standard amount, it will affect the appellant's right to proceed

against the Personal Guarantors of the CD inasmuch as no dues certificate

has already been issued by the appellant, it is very much evident that the

appellant is not going to proceed against the asset which the respondent has

purchased. The learned counsel did make a statement to that affect.

5. This Tribunal finds merit in the submissions. The respondent, the

Successful Auction Purchaser of the assets of the CD can only concern itself

with securing an encumbrance free title to the asset it has purchased.

Therefore, any re-classification of the loans in the accounts of the appellant

cannot extend to the extent of interfering with the appellant's right to

proceed against the personal guarantor. To a pointed query from the bench,

the learned counsel submitted that there is no practice of partial

standardisation of accounts.

6. In view of the appellant's stands that it would not proceed against the

asset sold in auction to the respondent, the respondent cannot concern

itself with the standardisation of loan in the books of the appellant. In the

2|3 result. The appeal is allowed and the order of the Adjudicating Authority

granting concession vis-à-vis item 17 extracted in para 3 above is set aside.

[Justice N Seshasayee] Member (Judicial)

[Indevar Pandey] Member (Technical) TU/SK

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