# In the matter of Bhanu Pratap Singh vs. Rakesh Jindal

> NCLAT judgment dated 2024-04-03. Citation: TCN-2024-NCLAT-00543. The case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 3 Apr 2024
- **Citation:** TCN-2024-NCLAT-00543
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhanu-pratap-singh-vs-rakesh-jindal-7417378a

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Allahabad Bench, regarding the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Kushal International Limited. The CIRP was initiated by Jammu & Kashmir Bank Ltd. as the Financial Creditor. After the CIRP failed to yield a resolution, liquidation proceedings were initiated. The appellant, who holds 43% share in the Corporate Debtor and is its ex-director, challenged the liquidation process, alleging irregularities in the auction of the Corporate Debtor's assets by the liquidator, particularly concerning the reduction of the reserve price. The appellant filed multiple IAs challenging the liquidator's actions.

## Facts

The Financial Creditor, Jammu & Kashmir Bank Ltd., initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Kushal International Limited, under Section 7 of the IBC. The CIRP was allowed on 2018-05-08. As the CIRP did not yield a fruitful outcome, the Committee of Creditors (CoC) decided to initiate liquidation proceedings on 2018-10-12, which was allowed on 2019-02-28. The Appellant holds 43% share in the Corporate Debtor company and is the Ex-Director of the Corporate Debtor. The Respondent was appointed as a Liquidator on 2021-12-20, and the Liquidation proceedings commenced from 2021-12-20. The first public notice for liquidation was issued on 2022-06-04, with a reserve price of Rs.66.35 Crores. The assets were eventually sold for

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## Issues and analysis

### Issue 1: Whether there are any violations in the liquidation process as per Insolvency and Bankruptcy Board …

**Ratio:** The Schedule I of Liquidation Regulations only lays down the manner of sale. If the

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**Reasoning:** The court reasoned that the liquidator had obtained the approval of the SCC for

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**Interpretation:** The interpretation of Regulation 33(1) and Schedule I of the Liquidation

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**Application:** The court applied this reasoning to the facts of the case, noting that the

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…; +1 more
- **Appellants:** BHANU PRATA…
- **Respondents:** Kushal Internation…; RAKESH JINDAL…

## Timeline

- **2018-05-08 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Kushal International…
- **2018-10-12 — Liquidation D…**: Committee of Creditors (CoC) decided to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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