Immix Trade Private Limited Vs Sunrise Properties Pvt Ltd (NCLT Mumbai)
Section 14 IBC: Pledged Shares Ordered Restored as Post-Moratorium Invocation Held Void: NCLT Mumbai
The Resolution Professional of the Corporate Debtor filed an application under Sections 60(5) and 74 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking, among other reliefs, a declaration that the invocation of pledged securities under a Loan-cum-Pledge Agreement dated 04.10.2024 was illegal and void, restoration of the pledged shares, and action under Section 74 for alleged breach of the moratorium.
The Corporate Debtor had pledged 3,62,000 equity shares of Flexituff Ventures International Limited as security for a loan of ₹3 crore. CIRP commenced on 24.10.2024 and a moratorium under Section 14 was imposed. The Resolution Professional later received information that the pledged shares had been debited from the Corporate Debtor’s demat account on 20.05.2025 during the subsistence of the moratorium. The Applicant contended that the pledge constituted a security interest under the Code and that its invocation during the moratorium was illegal and attracted Section 74.
The Respondents submitted that the transfer of shares on 20.05.2025 was a mechanical consequence of a pre-CIRP event, that the shares had not been sold or transferred to any third party, remained with Respondent No. 1 as pledgee, and that they had expressed willingness to reverse the transfer and restore the pledge arrangement. They also opposed action under Section 74.
