# In the matter of D.R Corporation (Proprietorship Firm) Vs. Shri Ravi Kapoor, Liquidator of City Tiles Ltd. CA (AT) (Ins) No.  356 of 2021

> NCLAT judgment dated 2021-07-05. Citation: TCN-2021-NCLAT-00208. This case involves an appeal against an order dated 27.04.2021 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 5 Jul 2021
- **Citation:** TCN-2021-NCLAT-00208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dr-corporation-proprietorship-firm-vs-shri-ravi-kapoor-liquidator-of-city-tiles-93548683

## Summary

### Background

This case involves an appeal against an order dated 27.04.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, regarding an application in a corporate insolvency resolution process. The appellant challenges the order and a related public announcement concerning the sale of a lot. The Adjudicating Authority had considered the liquidator's willingness to issue a fresh public announcement instead of contesting the matter. The financial creditor had initiated the CIRP under Section 7 of the Insolvency and Bankruptcy Code, which was admitted on 22.04.2019. An interim resolution professional was appointed and later replaced by Mr. Ravi Kapoor, who became the liquidator. The Committee of Creditors decided to liquidate the corporate

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## Facts

D.R Corporation, through its proprietor Shri Manoj Kumar Agarwal, filed an appeal against an order passed by the Adjudicating Authority (NCLT), Ahmedabad, in a corporate insolvency resolution process. The appeal concerns the auction of Lot No. 4, which includes the Plant and Machinery of a Ceramic Manufacturing Unit. The appellant claims to be the highest bidder in an auction conducted on 12.04.2021, pursuant to a public announcement on 26.03.2021, with a bid of Rs. 6,15,00,000/- and deposited 25% of the bid amount. Respondent No. 2, Seazone Granito Pvt. Ltd., also participated in the auction but claimed technical difficulties prevented them from participating effectively. Respondent No. 2 filed an application before the Adjudicating Authority, which the appellant

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing a re-auction and fresh public announcement …

**Ratio:** The advice of the consultation committee shall not be binding on the Liquidator and only

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**Reasoning:** The court noted that the liquidator had gone for e-auction based on the advice of the

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**Interpretation:** Regulation 31A (10) of IBBI (Liquidation Process) Regulation 2016 provides that

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**Application:** The court found that the liquidator's decision to go for re-auction was based

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## Parties

- **Judges:** Ashok Kumar…; Jarat Kuma…
- **Appellants:** D.R Corpo…
- **Respondents:** City Tile…; Ravi Ka…

## Timeline

- **2019-04-22 — CIRP Init…**: The Adjudicating Authority admitted the application for initiation of Corporate…
- **2019-05-21 — RP Appoin…**: Mr. Ravi Kapoor was appointed as the Resolution Professional (RP) in the first Committee…

## 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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