# In the matter of D.D. International Pvt. Ltd. & Anr. vs. Rajesh Kumar Agarwal Liquidator, Divine Alloys & Power Company Ltd. & Ors.

> NCLAT judgment dated 2024-12-06. Citation: TCN-2024-NCLAT-00043. Punjab National Bank initiated insolvency proceedings against Divine Alloys & Power Company…

- **Court:** NCLAT
- **Order date:** 6 Dec 2024
- **Citation:** TCN-2024-NCLAT-00043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dd-international-pvt-ltd-anr-vs-rajesh-kumar-agarwal-liquidator-divine-alloys-po-922910dc

## Summary

### Background

Punjab National Bank initiated insolvency proceedings against Divine Alloys & Power Company Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 07.03.2019, and Rajesh Kumar Agarwal was appointed as the Resolution Professional (RP). With no resolution plan forthcoming, the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor. The RP then filed an application for liquidation, which was approved on 11.03.2021, and Rajesh Kumar Agarwal was appointed as the Liquidator. The property was put up for e-auction on 05.09.2022. D.D. International Pvt. Ltd. & Anr. (Appellant) deposited Rs. 10 lac as refundable participation deposit and Rs. 4.225 Cr. as EMD and was declared the highest

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## Facts

Punjab National Bank initiated insolvency proceedings against Divine Alloys & Power Company Limited (Corporate Debtor) under Section 7 of the IBC. The application was admitted on 07.03.2019. Rajesh Kumar Agarwal was appointed as the RP and later as the Liquidator. The CoC resolved to liquidate the Corporate Debtor due to the absence of a resolution plan. An e-auction was conducted on 05.09.2022. D.D. International Pvt. Ltd. & Anr. (Appellant) deposited Rs. 10 lac as refundable participation deposit and Rs. 4.225 Cr. as EMD and was declared the highest bidder on 29.09.2022. The Appellant requested extensions to pay the installment. The Appellant raised an issue regarding land under the DRI plant not owned by the Corporate Debtor. The Respondent forfeited the EMD

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## Issues and analysis

### Issue 1: Whether the non-disclosure of the dispute relating to the land on which the DRI plant is …

**Ratio:** The liquidator has a primary duty to provide accurate information to potential bidders

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**Reasoning:** The Tribunal found that the non-disclosure of the dispute relating to the land on which

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**Interpretation:** This emphasizes the importance of transparency and full disclosure in

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**Application:** In this case, the Liquidator's failure to disclose the land dispute in the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** D.D. International…
- **Respondents:** Divine Alloys &…; Rajesh Kumar…

## Timeline

- **2019-03-07 — Admission of Insolvency…**: Punjab National Bank's application under Section 7 of IBC against Divine Alloys & Power…
- **2021-03-11 — Liquidation…**: Liquidation application was allowed, and Rajesh Kumar Agarwal was appointed as the…

## 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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