# In the matter of Punjab National Bank Vs. EVA Agro Feeds Pvt. Ltd. & Anr. Company Appeal(AT) (Insolvency) No. 757 of 2021

> NCLAT judgment dated 2021-11-30. Citation: TCN-2021-NCLAT-00035. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) against the…

- **Court:** NCLAT
- **Order date:** 30 Nov 2021
- **Citation:** TCN-2021-NCLAT-00035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/punjab-national-bank-vs-eva-agro-feeds-pvt-ltd-anr-company-appeal-fe6feb01

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) against the Impugned Order dated August 12, 2021, in I.A. (IB) No. 663/KB/2021 in CP(IB) 440/KB/2018 passed by NCLT, Kolkata Bench (Adjudicating Authority). The Appellant, being the Financial Creditor with a security interest in the Mirzapur Asset of the Corporate Debtor, sought to set aside the order against the impugned order dated August 12, 2021, and call for records from the Adjudicating Authority. The Adjudicating Authority had allowed the I.A. filed by Respondent No. 1, EVA Agro Feeds Pvt. Ltd., observing no irregularity in the e-auction process and no collusion between bidders.

## Facts

Punjab National Bank, the appellant and a financial creditor, filed an appeal against an order passed by the NCLT Kolkata Bench regarding an e-auction process for the Mirzapur Asset of the Corporate Debtor, EVA Agro Feeds Pvt. Ltd. The bank held a security interest in the asset. The Adjudicating Authority had allowed an application filed by EVA Agro Feeds Pvt. Ltd. (Respondent No. 1), finding no irregularities in the e-auction process and no collusion among bidders. The appellant contended that the liquidator had the authority to cancel the auction even after a highest bidder was identified, as the terms of the auction allowed for rejection of bids at any stage. The liquidator canceled the auction because the Mirzapur Asset was being sold at the reserve price, which

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## Issues and analysis

### Issue 1: Whether the liquidator has the authority to cancel an e-auction after identifying the highest …

**Ratio:** The liquidator has the authority to cancel an e-auction if the terms of the auction

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**Reasoning:** The tribunal relied on Supreme Court decisions stating that the successful bidder in an

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**Interpretation:** The power to cancel an auction is interpreted as a necessary tool for the

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**Application:** In this case, the auction notice contained a clause (3(k)) that gave the

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## Parties

- **Judges:** M. Venu…; V. P. S…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** EVA Agro Feeds…
- **Advocates:** Rajesh G…; Nipun S…; +7 more

## Timeline

- **2021-07-20 — Bid Plac…**: Respondent No 1 placed its…
- **2021-06-28 — Sale Auction…**: The learned Liquidator invoked the provisions contained in Clause 3(k) of the sale…

## 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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