# In the matter of Torrecid India Pvt. Ltd. vs. Arrhum Tradelink Private Limited Company Appeal (AT) (Insolvency) No.943 of 2022

> NCLAT judgment dated 2023-03-15. Citation: TCN-2023-NCLAT-00674. This appeal was filed against an order dated 20.06.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 15 Mar 2023
- **Citation:** TCN-2023-NCLAT-00674
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/torrecid-india-pvt-ltd-vs-arrhum-tradelink-private-limited-company-appeal-72237c73

## Summary

### Background

This appeal was filed against an order dated 20.06.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad, Division Bench, Court No.1, which allowed I.A No. 238/2022 filed by Respondent No.1. The application sought a direction to declare the applicant as the successful bidder and cancel the bid of the Appellant, which had been accepted by the Liquidator. The Adjudicating Authority allowed the application and directed that the amount deposited by the Appellant be refunded with interest accrued within two weeks. The insolvency resolution process commenced against the Corporate Debtor, Kaneria Granito Limited, on 26.04.2019, following an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, by the Bank of India. Liquidation

…

## Facts

The Corporate Debtor, Kaneria Granito Limited, underwent an insolvency resolution process initiated by the Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. Liquidation proceedings commenced on 15.07.2020, and the Liquidator issued an e-auction sale notice on 09.02.2022. The e-auction offered four options for the sale of assets. The Appellant, Torrecid India Pvt. Ltd., and Respondent No.1, Arrhum Tradelink Private Limited, participated in the e-auction conducted on 28.02.2022. The E-auction Process Information Document stipulated a minimum incremental bid amount of Rs.5,00,000/- and extended the closing time by five minutes if a bid was placed in the last five minutes. The Appellant submitted a bid of Rs.38,40,00,000/-, which was initially

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in allowing I.A. No. 238/2022 and directing the …

**Ratio:** The ratio is that the Liquidator has a duty to consider the broader objectives of the

…

**Reasoning:** The Adjudicating Authority considered the E-auction Process Information Document and the

…

**Interpretation:** The interpretation is that the Liquidator must not only follow the technical

…

**Application:** In this case, the Adjudicating Authority applied the ratio by considering that

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Torrecid India…
- **Respondents:** Kaneria Granito…; Arrhum Tradelink…

## Timeline

- **2019-04-26 — Insolvency Resolution…**: Insolvency resolution process commenced against Kaneria Granito Limited following an…
- **2020-07-15 — Liquidation Proceedings…**: Liquidation proceedings were initiated…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/torrecid-india-pvt-ltd-vs-arrhum-tradelink-private-limited-company-appeal-72237c73