JUDGMENT

ASHOK BHUSHAN, J:

This Appeal has been filed against the Order dated 09.09.2022 passed by the National Company Law Tribunal, Mumbai Bench, Court I, (hereinafter referred to as “The Adjudicating Authority”) admitting Section 7 Application of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “The Code”) filed by Mr. Nitin Suresh Satghare and 99 Ors.-Financial Creditors. The Section 7 Application was filed against the Corporate Debtor-Pancard Clubs Limited. The Appellant before us i.e. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) who had filed I.A. No. 1894 of 2019 praying for dismissal of the Company Petition.

2. Brief facts of the case necessary to be noted for deciding this Appeal are:-

i. The SEBI received various complaints against Pancard Clubs Limited alleging fraudulent fund mobilisation across the Country. After certain proceedings, the SEBI passed an Order dated 29^th February, 2016 in exercise of power under SEBI Act, 1992 directing Pancard Clubs Limited and its directors to refund the amounts collected from investors under an unregistered Collective Investment Schemes along with returns or not to carry out any collective investment schemes. The Pan Card Clubs Limited was further directed to wind up existing collective investment schemes and refund through Bank Demand Draft or pay order, the money collected by the said company under the schemes. It was further directed that in event Pancard Clubs Limited not complied with the directions, SEBI shall initiate attachment and recovery proceedings under SEBI Act, Rules and Regulations framed thereunder.

ii. Recovery Officer of the SEBI vide its Certificate Number 1020/2016 initiated recovery proceedings against the Pancard Clubs Limited and its directors for having failed to repay sum of Rs. 7035,00,01.000/- along with returns to investors. SEBI attached the Bank Accounts of the Corporate Debtor as well as of movable and immovable properties of the Defaulters. Security Appellate Tribunal vide Order dated 12.05.2017 upheld the Order dated 29.02.2016 in furtherance of recovery initiated against the defaulters. E-auction notices were issued for sale of various properties. Some of the investors filed a Writ Petition No. 12998 of 2018 before the High Court of Judicature at Bombay challenging the e-auction notices alleging that Appellant is conducting e-auction of the properties. Allegations in the Writ Petition were made that properties of the Corporate Debtor as well as directors and the associate companies are being sold at grossly undervalued prices. The Hon’ble High Court passed an Interim Order dated 09.01.2019 directing the 15 auctions which have already been completed, Successful Auction Purchaser are permitted to complete the transactions and take possession which shall be subject to further orders of the Court. With respect to remaining 53 properties SEBI was permitted to take necessary steps and actual auction was not to be conducted until further orders.

iii. Respondent Nos. 3 to 102 to this Appeal has filed Section 7 Application i.e. CP(IB) No. 4578/MB/2018 in which, intervention application was filed by SEBI.

iv. Another proceedings was initiated before the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 (Hereinafter referred to as “MPID Act”) Court in Special Case No. 98 of 2017. The Government of Maharashtra under MPID Act attached the properties of the Corporate Debtor. The SEBI filed an Application before the MPID Court in Special Case No. 98. 0f 2017 submitting that since MPID Court is seized of the matter, proceedings may be continued by MPID Court and SEBI will not proceed independently but would assist the MPID Court as and when directed.

v. Section 7 Application was heard by the Ld. Adjudicating Authority. Appellant also appeared before the Adjudicating Authority who has already filed an Application for Intervention and Impleadment. The Adjudicating Authority after hearing