# In the matter of Atlanti Spinning and Weaving Mills Ltd. vs. Dolly Investment Company Pvt. Ltd.

> NCLAT judgment dated 2025-08-07. Citation: TCN-2025-NCLAT-00454. The appeal was filed under Section 62 of the Insolvency and Bankruptcy Code, 2016, against…

- **Court:** NCLAT
- **Order date:** 7 Aug 2025
- **Citation:** TCN-2025-NCLAT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/atlanti-spinning-and-weaving-mills-ltd-vs-dolly-investment-company-pvt-ltd-e849e9ef

## Summary

### Background

The appeal was filed under Section 62 of the Insolvency and Bankruptcy Code, 2016, against the order of the National Company Law Appellate Tribunal (NCLAT) which dismissed the appellant's appeal against the order of the National Company Law Tribunal (NCLT). The NCLT had dismissed the appellant's application to declare a sale transaction dated 11.08.2008 in favor of the respondent as void and fraudulent.

## Facts

The corporate debtor (Atlanti Spinning and Weaving Mills Ltd.) was under Corporate Insolvency Resolution Process (CIRP) vide order dated 9.10.2018.

CIRP was not successful, and NCLT ordered for liquidation of the corporate debtor on 09.01.2020, appointing a liquidator.

The liquidator filed an application to declare the sale transaction dated 11.8.2008 executed by the corporate debtor in favor of the respondent as void and fraudulent.

The subject matter of the sale transaction was purchased for Rs.50 lacs by the corporate debtor in an auction held in 1989.

The sale deed executed on 11.08.2008 by the corporate debtor in favor of the respondent recited that the sale was being executed to honor the agreement of 1989.

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## Issues and analysis

### Issue 1: Whether the sale transaction dated 11.8.2008 executed by the corporate debtor in favor of the …

**Ratio:** The court held that there was no material to indicate that on 11.08.2008 when the

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**Reasoning:** The court reasoned that in the absence of cogent material on record, it is difficult to

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**Interpretation:** The court interpreted Sections 66 and 67 of the IBC to require a finding that

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**Application:** The court applied the principles to the facts of the case and concluded that

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## Parties

- **Judges:** Manoj M…; SANDEEP…
- **Appellants:** Atlanti Spinning…
- **Respondents:** Atlanti Spinning…; Dolly Investment…
- **Other parties:** Liquidator (i.e.,…
- **Advocates:** Ramakrishnan…; Munawwar…; +7 more

## Timeline

- **1989-05-15 — Agreement t…**: Agreement to sell the subject…
- **2008-08-11 — Registered Sa…**: Registered sale deed is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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