# In the matter of Deepika Bhugra Prasad vs. Lucky Holdings Pvt. Ltd.

> NCLAT judgment dated 2025-12-01. Citation: TCN-2025-NCLAT-00616. The appeal arises from liquidation proceedings of Ess Dee Aluminium Limited. The appellant,…

- **Court:** NCLAT
- **Order date:** 1 Dec 2025
- **Citation:** TCN-2025-NCLAT-00616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-kolkata-bench/deepika-bhugra-prasad-vs-lucky-holdings-pvt-ltd-86d213cb

## Summary

### Background

The appeal arises from liquidation proceedings of Ess Dee Aluminium Limited. The appellant, the liquidator, is aggrieved by an order directing the refund of Earnest Money Deposit (EMD) to the respondent, Lucky Holdings Pvt. Ltd., who was a bidder in an e-auction for the sale of the corporate debtor as a going concern.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Ess Dee Aluminium Ltd. commenced on 14.02.2020.

The appellant, as the Interim Resolution Professional, issued a public announcement on 19.02.2020 inviting claims from creditors.

The Committee of Creditors (CoC) confirmed the appellant as the Resolution Professional on 18.03.2020.

The appellant published Form-G on 03.07.2020, inviting Expressions of Interest (EOI).

The CoC resolved to liquidate the Corporate Debtor due to the failure of the resolution process.

The Adjudicating Authority ordered liquidation on 08.10.2021 and appointed the appellant as the Liquidator.

The Liquidator issued a sale notice on 13.03.2022 for a piecemeal sale of assets, which was later revised to a sale as a Going Concern.

…

## Issues and analysis

### Issue 1: Whether Section 74 of the Indian Contract Act applies …

**Ratio:** Section 74 of the Indian Contract Act does not apply to forfeiture of EMD in liquidation

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**Reasoning:** Liquidation auctions are governed by the Insolvency and Bankruptcy Code, 2016, and the

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**Interpretation:** Forfeiture of EMD in liquidation auctions is a legitimate, contractual, and

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**Application:** The Adjudicating Authority incorrectly applied Section 74 of the Indian

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## Parties

- **Judges:** Yogesh K…; Indevar P…
- **Appellants:** Deepika Bhugra…
- **Respondents:** Ess Dee Aluminium…; Lucky Holdings…
- **Advocates:** Krishnendu…; Rahul G…; +6 more

## Timeline

- **2020-02-14 — Commencement…**: Corporate Insolvency Resolution Process…
- **2020-02-19 — Public Annou…**: Appellant issued a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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