SEBI challenged the Order of NCLT. Will Insolvency Bankruptcy Code overrides SEBI Act?

The Appellate Adjudicating Authority while dealing with the issue “Whether Section 28A of the ‘SEBI Act, 1992’ will have overriding effect on the provisions of Section 14 of the ‘I&B Code’, held that Section 28A of the ‘SEBI Act, 1992’ being inconsistent with Section 14 of the ‘I&B Code’, we hold that Section 14 of the ‘I&B Code’ will prevail over Section 28A of the ‘SEBI Act, 1992’ and ‘Securities Exchange Board of India’ cannot recover any amount including the penalty from the ‘Corporate Debtor’. The ‘Bombay Stock Exchange’ for the same very reason cannot take any coercive steps against the ‘Corporate Debtor’ nor can threaten the ‘Corporate Debtor’ for suspension of trading of shares and the ‘Securities and Exchange Board of India’ cannot recover any amount nor can sell the assets of the ‘Corporate Debtor’ during the ‘Moratorium’ period. (Link : https://ibbi.gov.in//webadmin/pdf/order/2019/May/9th%20May%202019%20In%20the%20matter%20of%20Bohar%20Singh%20Dhillon%20Vs.%20Rohit%20Sehgal%20(Interim%20R.P.)%20&%20Ors.%20[CA(AT)(Insolvency)%20665-2018]_2019-05-10%2017:17:38.pdf)

SEBI challenged the order of Adjudicating Authority and filed an appeal to the Supreme Court of India on the grounds that a CIS is constituted in the form of a Trust and its assets are held by the Trustees for the benefit of the investors. This Trust is completely divorced from the Collective Investment Management Company which initiates the scheme. Thus, the IBC cannot be invoked when the case concerns a CIS and not a company. (Link : https://sci.gov.in/supremecourt/2017/38870/38870_2017_Judgement_02-May-2018.pdf)