Sanjay Trading Private Ltd. (STPL) is engaged in the business of whole sale distributorship of Rice and Grains, in Grain Mandi, Kota. In order to increase the business, the company requires some additional working capital finance. The company approached its banker- Star Bank of Kota (the Bank) for increase of the Cash Credit Limits from the existing ₹2.35 crore to ₹3.90 crore and offered the Bank, three immovable properties (which are in the name of Sanjay, the Managing Director and Guarantor of the Company) which were purchased through a registered sale deed dated 22.11.2019) as mortgage for securing the said cash credit limit. Star Bank of Kota after securing the equitable mortgage of the property, sanctioned a cash credit limit of ₹3.90 crore to the Company. The Star Bank of Kota also got the registration of the mortgage of the properties with the "Central Registry of Securitization Asset Reconstruction and Security Interest of India" (CERSAI) under the provisions of the SARFAESI Act, 2002. In view of wafer thin margins and tough competition in the market, the business of the Company was adversely affected and STPL had to face the brunt of liquidity crisis and encountered default in repayments/servicing of cash credit and subsequently, the bank account was classified as NPA in the books of Star Bank of Kota. A recall notice was sent to the Company but no response was given. The bank issued a notice under Section 13(2) of the SARFAESI, Act, 2002 to the Company mentioning therein that the Bank shall take possession of the secured assets and will also take over the management of the Company. Under the circumstances, Sanjay wanted to take recourse under the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) though he is under the apprehension that the provisions of the IBC, 2016 may not be applicable in his case. Nevertheless, after receipt of the notice, the Company applied for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP application was admitted by the Adjudicating Authority, moratorium was declared and an Interim Resolution Professional (IRP) was appointed. The IRP collated the claims from the creditors. Star Bank of Kota submitted its claim as the financial creditor. Apart from Star Bank of Kota, some other operational creditors also lodged the claim. The Committee of Creditors was constituted in which there was a single financial creditor i.e. Star Bank of Kota. Meanwhile the notice period under Section 13(2) of the SARFAESI Act, 2002 had expired and Star Bank of Kota started to take possession of the secured assets which were mortgaged by Sanjay in his capacity as a personal guarantor. Sanjay vehemently objected to this action of the bank in view of the fact that since the Company is under moratorium all the legal proceedings against the Company are put on hold by the Adjudicating Authority and therefore, the decision of the Bank to take possession of the mortgaged properties is invalid. He filed a case with the Honorable National Company Law Tribunal (NCLT) pleading that since the moratorium is under way, the enforcement of security interest under the SARFAESI Act, 2002 against the Company be stopped altogether. Meanwhile, the Enforcement Directorate (ED), on the basis of some solid information that the Company on the guise of dealing in Rice and Grains, is dealing with the prohibited drugs which is an offence, the ED along with its team, in the early hours of morning, raided the office of the Company and at the residence of Sanjay and found huge quantity of poppy straw at the office of the Company as well as at in the godown of Sanjay. The ED ordered a provisional attachment of the office premises and the residence of Sanjay. Both these properties were already under mortgage with Star Bank of Kota.