# In the matter of RK Industries Unit II LLP Through Its Authorised Signatory Shri Jinay Batukbhai Patel vs. Union of India

> HC judgment dated 2024-05-28. Citation: TCN-2024-HC-00082. The Petitioner approached the High Court of Delhi seeking a direction to the Insolvency and…

- **Court:** HC
- **Order date:** 28 May 2024
- **Citation:** TCN-2024-HC-00082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/rk-industries-unit-ii-llp-through-its-authorised-signatory-shri-jinay-batukbhai-be9dc384

## Summary

### Background

The Petitioner approached the High Court of Delhi seeking a direction to the Insolvency and Bankruptcy Board of India (IBBI) to take appropriate steps against the Liquidator, Mr. Sundaresh Bhat, who had been suspended by the Disciplinary Committee of the IBBI. The case arises from the liquidation of ABG Shipyard Limited, where Mr. Bhat served as the liquidator. The petitioner was declared as the anchor bidder for the second Swiss Challenge Process. The petitioner filed an appeal before the NCLAT challenging the order passed by the NCLT, which was stayed by the NCLAT. Respondent No. 5 also filed an appeal before the Apex Court challenging the order passed by the NCLAT. The Apex Court disposed of the said appeal and directed the NCLAT to decide the appeal filed by the

…

## Facts

ABG Shipyard Limited was undergoing liquidation after an application was filed by ICICI Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The NCLT, Ahmedabad, initiated the Corporate Insolvency Resolution Process (CIRP). Respondent No.4, Mr. Sundaresh Bhat, was appointed as the Interim Resolution Professional and later as the liquidator. Four public auction processes to dispose of the assets of ABG Shipyard failed. Mr. Bhat then sought permission from the NCLT to dispose of the assets through a private sale via the Swiss Challenge Process. The NCLT allowed this. The Petitioner was declared the anchor bidder in the second Swiss Challenge Process with a bid of Rs.431 Crores. Respondent No.4 received a higher offer from Respondent No.5 and sought

…

## Issues and analysis

### Issue 1: Whether the IBBI should be directed to take further action against the liquidator, Mr. Sundaresh …

**Ratio:** The court has the discretion to direct regulatory bodies like IBBI to take appropriate

…

**Reasoning:** The court considered that the IBBI had already taken action by suspending Mr. Sundaresh

…

**Interpretation:** The court interpreted its role as one of oversight, ensuring that regulatory

…

**Application:** The court applied this principle by acknowledging the IBBI's suspension of Mr.

…

## Parties

- **Judges:** Subramonium…
- **Appellants:** RK INDUSTRIES…
- **Respondents:** ABG Shipyard…; UNION OF INDIA…
- **Other parties:** Kohi…

## Timeline

- **2019-09-17 — Public Annou…**: Public announcement made regarding…
- **2019-09-27 — Public Annou…**: Public announcement made regarding…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/rk-industries-unit-ii-llp-through-its-authorised-signatory-shri-jinay-batukbhai-be9dc384