RP cannot unilaterally reclassify creditor from secured financial to unsecured; creditor with corporate guarantee (financial debt) and concurrent pledge security for same debt qualifies as secured financial creditor.

Arshiya Limited …Corporate Debtor Order delivered on: 12.01.2026 Coram Shri Prabhat Kumar Sushil Mahadeorao Kochey Hon’ble Member (Technical) Hon’ble Member (Judicial)

Appearances:

CP (IB)/ 3143 (MB) 2019 For the Applicant : Adv. Ankur Kumar a/w Adv.

Saniya Anjum and Adv. Komal For the Respondent : Adv. Ayush Rajani ORDER

1. The present interlocutory application IA 2913 of 2025 is filed on 11.6.2025 under Section 60(5) of Insolvency & Bankruptcy Code, 2016 (“Code”) by Punjab National Bank (“the Applicant/ PNB”) against Pankaj Mahajan, Resolution Professional (“Respondent/RP”) in Corporate Insolvency Resolution Process (“CIRP”) of Arshiya Limited (“Corporate Debtor”) seeking a direction from this Tribunal to declare and recognize the status of the Applicant as a secured creditor in the CIRP of the Corporate Debtor carried in terms of Order passed in Company Petition No. 3143 of 2019, filed under Section 7 of the Code. The Applicant has prayed the following:

a. Allow the present Application;

b. Direct the Respondent to treat and recognize the Applicant as a secured creditor in the CIRP of Corporate Debtor in respect of the amount secured by way of pledge agreement dated 09.09.2010;

c. Declare that the reclassification of the Applicant's claim by Respondent as an unsecured financial creditor is erroneous and contrary to the provisions of the code, and hence need to be set aside;

d. Pass such further or other order(s) as may be deemed fit and proper in the interest of justice.

2. The Applicant is a Financial Creditor in respect of the credit facilities sanctioned and disbursed to Arshiya Northern FTWZ Limited (“ANFL” / “Principal Borrower”), which is the subsidiary company of Corporate Debtor.

CP (IB)/ 3143 (MB) 2019

3. Mr. Nitin Vishwanath Panchal was appointed as the Interim Resolution Professional of the Corporate Debtor by this Tribunal vide Order dated 23.04.2024 passed in CP (IB)/ 3143 (MB) 2019. Thereafter Mr. Pankaj Mahajan i.e., the Respondent herein, was appointed as the Resolution Professional of the Corporate Debtor vide order dated

25.09.2024 passed in IA No. 4395 of 2024.

4. The Applicant sanctioned a Loan of Rs. 100 crores on 27^th October, 2009.

5. Thereafter, ANFL was sanctioned the loan facilities for an aggregate principal amount not exceeding Rs.280,37,00,000/- (Rupees Two Hundred and Eighty Crores and Thirty Seven Lakhs Only) by the consortium of banks, viz. PNB, State Bank of India ("SBI"), AXIS Bank Limited ("AXIS"), State Bank of Patiala ("SBoP"), State Bank of Travancore ("SBT"), and State Bank of Mysore (“SBM”) and a ‘Common Loan Agreement’ and ‘Trust and Retention Account Agreement’ among Borrower, Consortium Lenders, PNB as Lenders’ Agent and PNB Investment ,Services Limited as well as ‘Lender’s Agent Agreement’ and ‘Inter-Creditors Agreement’ among Consortium Lenders, PNB as Lenders’ Agent and PNB Investment Services Limited both dated 7^th May, 2010 were entered into. These facilities were secured by Corporate Guarantee by M/s. Arshiya International Limited (subsequently merged into Corporate Debtor) and M/s Arshiya FWTZ Limited vide deed dated 7^th May, 2010 as well as Pledge Agreement and Deed of Hypothecation both dated 9^th September, 2010. The share of each consortium lender in the aggregate credit facilities was as follows :

CP (IB)/ 3143 (MB) 2019

6. The Consortiu