# In the matter of Chandu Laxman Chavan Vs Union of India & Ors CA (AT) (Insolvency) No. 15-2018

> NCLAT judgment dated 2018-05-01. Citation: TCN-2018-NCLAT-00312. The case involves multiple company appeals related to insolvency proceedings. The Appellate…

- **Court:** NCLAT
- **Order date:** 1 May 2018
- **Citation:** TCN-2018-NCLAT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/chandu-laxman-chavan-vs-union-of-india-ors-ca-656e0723

## Summary

### Background

The case involves multiple company appeals related to insolvency proceedings. The Appellate Tribunal is addressing concerns regarding the auction of company property by the Liquidator and the interpretation of an interim order dated April 20, 2018. The Liquidator sought clarification on whether auctions completed before the order should be affected.

## Facts

Several company appeals (AT) related to insolvency are consolidated: No. 15 of 2018 (Chandu Laxman Chavan vs. Union of India), No. 335 of 2017 (Indian Overseas Bank vs. Kamineni Steel & Power India Pvt. Ltd.), No. 23 of 2018 (United Seamless Tabulaar Pvt. Ltd. vs. Kamineni Steel & Power India Pvt. Ltd.), and No. 45 of 2018 (Kamineni Steel & Power India Pvt. Ltd. vs. Indian Bank). An interim order dated April 20, 2018, was issued. The Liquidator sought clarification regarding the auction of company property, specifically whether auctions completed before the April 20, 2018, order were subject to the order's restrictions. The Liquidator argued that auctions had been completed before the order was passed. The key fact is the timing of the auctions relative to

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## Issues and analysis

### Issue 1: Whether the interim order dated April 20, 2018, applies to auctions of company property completed …

**Ratio:** The principle is that court orders are generally prospective unless explicitly stated

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**Reasoning:** The court reasoned that even if auctions were completed before the order, confirming the

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**Interpretation:** The interim order is interpreted to mean that all stages of the sale process,

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**Application:** The court applied this interpretation to the specific facts by directing that

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Chandu Laxman…
- **Respondents:** Kamineni Steel…; UNION OF INDIA &…
- **Advocates:** Shilpa…; Ramji Srin…; +9 more

## Timeline

- **2018-04-20 — Interim…**: Appellate Tribunal issued an interim…
- **2018-05-01 — Order Clarif…**: Appellate Tribunal clarified the interim order, specifying its applicability to auctions…

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