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2026 Supreme(SC) 15

SANJAY KUMAR, ALOK ARADHE
UV Asset Reconstruction Company Limited – Appellant
Versus
Electrosteel Castings Limited – Respondent


Advocates appeared:
For the Appellant(s) : Mr. Mukul Rohatgi, Sr. Adv. Mr. Dhruv Mehta, Sr. Adv. Mr. Vikas Mehta, AOR Mr. Pulkit Deora, Adv. Mr. Hemant Kothari, Adv. Mr. Kartikeya Sharma, Adv. Mr. Kartik Pandey, Adv. Ms. Nitika Grover, Adv. Mr. Nishant Anshul, Adv. Mr. Sameer Rohatgi, Adv. Mr. Muthu Thangathurai, Adv. Mr. Gopal Subramanium, Sr. Adv. Mr. Dhruv Dewan, Adv. Mr. Rohan Batra, AOR Ms. Gauri Subramanium, Adv. Mr. Raghav Kohli, Adv. Mr. Rishabh Bhargava, Adv. Ms. Sanjukta Roy, Adv. Mr. Dhruv Sethi, Adv. Mr. Pranav Diesh, Adv.
For the Respondent(s): Mr. Amit Sibal, Sr. Adv. Mr. Dhruv Dewan, Adv. Mr. Rohan Batra, AOR Mr. Rishabh Bhargava, Adv. Ms. Sanjukta Roy, Adv. Mr. Dhruv Sethi, Adv. Mr. Mukul Rohatgi, Sr. Adv. Mr. Dhruv Mehta, Sr. Adv. Mr. Vikas Mehta, AOR Mr. Pulkit Deora, Adv. Mr. Hemant Kothari, Adv. Mr. Kartikeya Sharma, Adv. Mr. Kartik Pandey, Adv. Ms. Nitika Grover, Adv. Mr. Nishant Anshul, Adv. Mr. Sameer Rohatgi, Adv. Mr. Muthu Thangathurai, Adv.

Judgement Key Points

Departmental Enquiry Report
Regarding Missing Case File
(Telangana State Subordinate Judiciary)

  1. Introduction
    This report is prepared in relation to the missing case file pertaining to [Case Name/Number], which was under the jurisdiction of [Court/Department]. The enquiry was initiated to ascertain the circumstances leading to the disappearance of the case file and to recommend appropriate action.

  2. Details of the Case File
    Case Name/Number: [Name/Number]
    Date of Filing: [Date]
    Court/Branch: [Court/Branch]
    Responsible Officer/Official: [Name of the Officer/Official]

  3. Allegation
    It is alleged that the case file has gone missing from the custody of [Department/Official], which has caused inconvenience and has raised concerns regarding the security and management of official records.

  4. Procedure Followed
    The enquiry was conducted as per the prescribed departmental procedures, including:

  5. Recording of initial complaint regarding the missing file (!)
  6. Examination of the concerned officer(s) and staff involved with the case file (!)
  7. Search and verification of the record room and storage areas (!)
  8. Review of attendance and movement registers of the concerned personnel (!)
  9. Collection of statements from witnesses and staff members (!)

  10. Evidence Collected
    The evidence gathered includes:

  11. Statements of the concerned officer(s) and staff (!)
  12. Record of the location and custody of the case file at various times (!)
  13. CCTV footage (if available) and access logs (!)
  14. Inventory and movement registers of files and records (!)
  15. Any relevant communication or instructions related to the case file (!)

  16. Findings
    Based on the enquiry, the following findings are made:

  17. The case file was last accounted for on [date] in the custody of [name/position] (!)
  18. There is no record of the file being transferred or dispatched officially (!)
  19. The file appears to have gone missing due to [negligence/lapse/error/other reason] (!)
  20. The responsible officer(s) failed to follow proper record management and security protocols (!)

  21. Conclusion and Recommendations
    The enquiry concludes that:

  22. The case file has indeed gone missing under circumstances that suggest negligence or procedural lapses (!)
  23. Immediate steps should be taken to recover the file, if possible, and to prevent recurrence (!)
  24. Disciplinary action may be considered against personnel found responsible for lapses in record management and security (!)
  25. The department should review and strengthen the existing record-keeping and security protocols to ensure such incidents do not recur (!)

  26. Remarks
    It is recommended that the competent authority take appropriate disciplinary and administrative measures based on this report and ensure strict adherence to record management policies in future.

  27. Declaration
    This enquiry report is prepared after a thorough and impartial investigation, adhering to the principles of fairness and natural justice.

Date: [Date]
Place: [Location]

Signature of the Enquiry Officer: [Name & Designation]
Seal/Stamp: [if applicable]


Table of Content
1. facts surrounding the financial interactions between esl, ecl, and srei (Para 3 , 4 , 5 , 6)
2. insolvency resolution process and its implications on the debt (Para 7 , 8 , 9 , 10)
3. nclat's findings on the guarantee issue (Para 11 , 12)
4. arguments for and against ecl's status as a guarantor (Para 13 , 14 , 15 , 16)
5. analysis of the legal definition of a guarantee (Para 17 , 18 , 19 , 20)
6. court's reasoning on the nature of clause 2.2 (Para 21 , 22 , 23 , 24)
7. conclusion dismissing the appeal (Para 25 , 26)

JUDGMENT :

ALOK ARADHE, J.

(i) INTRODUCTION

1. This appeal under Section 62 of Insolvency and Bankruptcy Code, 2016 (hereinafter, referred to as the ‘Code’) calls in question the legality and correctness of the judgment dated 24.01.2024 by the National Company Law Appellate Tribunal (NCLAT), whereby, the NCLAT affirmed the order dated 24.06.2022 passed by the Adjudicating Authority (NCLT) rejecting the application filed by the appellant under Section 7 of the Code.

(ii) ISSUE

2. The central issue arising for consideration in the present appeal pertains to the interpretation of Clause 2.2 of Deed of Undertaking dated 27.07.2011 executed between SREI Infrastr

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