An auction sale under the SARFAESI Act is only complete upon the issuance of a Sale Certificate as per Rule 9(6); title does not pass to the auction purchaser merely upon payment of consideration, and therefore the asset remains part of the Corporate Debtor's pool upon CIRP commencement.

ORDER

1. The present IA dated 19.08.2025 has been filed by Ms. Usha (‘the Applicant’), under Section 60(5) of the of the Insolvency and Bankruptcy Code, 2016 (‘IBC/the Code’) with the following prayers:

a) Declare that the right, title and interest of the property being, industrial land in its name located at Khasra No. 652/1 admeasuring about 13 Bigha 7 Biswa, 10 Biswanshi and Khasra No. 652 (min) admeasuring about 8 Bigha situated at Village Khejaria, tehsil Bilsara, District Jodhpur has passed from the Corporate Debtor to the Applicant prior to commencement of the Corporate Insolvency Resolution Process and the Corporate Debtor;

b) Direct the Respondent No. 1 to exclude the property being, industrial land in its name located at Khasra No. 652/1 admeasuring about 13 Bigha 7 Biswa, 10 Biswanshi and Khasra No. 652 (min) admeasuring about 8 Bigha situated at Village Khejaria, tehsil Bilsara, District Jodhpur from the Corporate Insolvency Resolution Process of the Corporate Debtor and from the Information Memorandum and from any other document relating to the Corporate Insolvency Resolution Process of the Corporate Debtor;

c) Pass such other or further orders as this Hon'ble Tribunal may deem fit and proper in the interest of justice.

Particulars of the Parties:

2. The Applicant, Ms. Usha claims itself to be a bona fide purchaser who emerged successful in a public e-auction conducted by Indian Overseas Bank.

3. The Respondent No.1, Mr. Rakesh Kumar Tulsyan is the Interim Resolution Professional appointed under the Code in respect of M/s SVP Textiles Ventures Pvt. Ltd (‘Corporate Debtor’).

4. The Respondent No. 2 is Indian Overseas Bank, a secured creditor and a member of the Committee of Creditors of the Corporate Debtor.

5. Respondent No. 3 is the borrower who had availed loan facilities from the Respondent No. 2 bank in respect of which the Corporate Debtor has executed Corporate Guarantee and had further mortgaged its asset in question.

Brief Facts of the Application:

6. Respondent No. 3 namely, M/s. Srivallabh Pittie South West Industries Limited, availed credit working capital term loan facility aggerating Rs. 63 Crores from Respondent No. 2 from 2011 to 2020. The Corporate Debtor stood as a corporate Guarantor for the said loans and created 1st pari passu charge on the industrial land in its name located at Khasra No. 652/1 admeasuring about 13 Bigha 7 Biswa, 10 Biswanshi and Khasra No. 652 (min) admeasuring about 8 Bigha situated at Village Khejaria, tehsil Bilsara, District Jodhpur (‘said property’) to secure the loan. Thereafter, upon default by the Respondent No. 3 in repayment of loans, the Respondent No. 2 issued demand notice dated 24.11.2022 under Section 13(2) of the SARFAESI Act.

7. The Applicant submits that the Respondent No. 2 took over the possession of the said property vide notice dated 30.06.2023 under Section 13(4) of the SARFAESI Act read with Rule 8 of the Security Interest (Enforcement) Rules, 2002 (‘the SARFAESI Rules’).

8. Further, Respondent No. 2 initiated proceedings under Section 7 of the Code against the Respondent No. 3 (Borrower). Vide order 10.10.2023, Corporate Insolvency Resolution Process (‘CIRP’) against the Respondent No. 3 was initiated and Mr. Avil Menezes was appointed as the Interim Resolution Professional (‘IRP’). The said order was challenged before the Hon'ble NCLAT vide Company Appeal (AT) (Insolvency) No. 1401 of 2023 which was dismissed vide order dated 10.05.2024.

9. The Applicant submits that the Res