DWARKA IRON INDUSTRIES PVT LTD vs COMPETENT AUTHORITY (UNDER MPID ACT 1999) AND ANR

Judgment text excerpt

bipin prithiani 1 wp-5272.25.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 5272 OF 2025 Dwarka Iron Industries Pvt. Ltd. … Petitioner Versus Competent Authority (under MPID Act, 1999) & Anr. … Respondents ****** Mr. Ashish Kamat, Senior Advocate, a/w Mr. Subir Kumar, Ms. Vaishnavi Pawar, Ms. Ashita Aggarwal i/by SDS Advocates for Petitioner. Mr. B. V. Samant, Addl. G. P., a/w Ms. P. J. Gavhane, AGP for Respondent Nos.1 and 2-State. ****** CORAM : MANISH PITALE AND SHREERAM V. SHIRSAT, JJ. RESERVED ON : 17th APRIL 2026 PRONOUNCED ON : 8th JUNE 2026 Judgment (Per Manish Pitale, J.) : . This petition raises questions pertaining to Section 32A of the Insolvency and Bankruptcy Code, 2016 (IBC) in the context of the provisions of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act). The petitioner is seeking quashing of a notification dated 19.03.2016 issued by the respondent No.1 i.e. the Competent Authority under the MPID Act in respect of a property belonging to a corporate debtor. The respondent No.2-State is opposing the prayer made in the present application, inter alia, on the ground bipin prithiani 2 wp-5272.25.doc that the object of enactment of the MPID Act needs to be taken into consideration by this Court, while determining the effect of Section 32A of the IBC, in the facts and circumstances of the present case. In order to properly appreciate the rival contentions and the questions sought to be raised by the rival parties, it would be necessary to briefly refer to the chronology of events, leading to filing of the present writ petition. 2. The corporate debtor in the present case is M/s. Abhirama Steels Limited and it is represented by the Successful Resolution Appli