# In the matter of Amrit Feeds Limited I.A.(IB) No. 663-KB-2021 in CP (IB) 440-KB-2018

> NCLT judgment dated 2021-08-12. Citation: TCN-2021-NCLT-01356. EVA Agro Feeds Private Limited filed an application against Sunil Mohan Acharya, the Liquidator…

- **Court:** NCLT
- **Order date:** 12 Aug 2021
- **Citation:** TCN-2021-NCLT-01356
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amrit-feeds-limited-iaib-no-663-kb-2021-in-cp-ib-440-kb-2018-063a3566

## Summary

### Background

EVA Agro Feeds Private Limited filed an application against Sunil Mohan Acharya, the Liquidator of Amrit Feeds Limited, after the liquidator cancelled an e-auction in which EVA Agro Feeds was declared the successful bidder. The Corporate Insolvency Resolution Process (CIRP) was initiated against Amrit Feeds Limited, and subsequently, an order of liquidation was passed, appointing Sunil Mohan Acharya as the liquidator. The applicant, EVA Agro Feeds, participated in the e-auction for the assets of Amrit Feeds and was declared the successful bidder. However, the liquidator cancelled the e-auction, citing clause 3(k) of the disclaimer clause in the e-auction process document, leading to the current application seeking the court's intervention.

## Facts

Amrit Feeds Limited underwent Corporate Insolvency Resolution Process (CIRP) and was subsequently ordered into liquidation, with Sunil Mohan Acharya appointed as the liquidator. EVA Agro Feeds Private Limited participated in an e-auction for the assets of Amrit Feeds. EVA Agro Feeds submitted a bid of Rs. 10 crore after depositing an Earnest Money Deposit (EMD) of Rs. 1 crore. EVA Agro Feeds received an e-auction certificate declaring them the successful bidder. The liquidator, however, cancelled the e-auction citing clause 3(k) of the disclaimer clause in the e-auction process document, which allowed the liquidator to cancel the e-auction without assigning any reason. EVA Agro Feeds challenged the cancellation, arguing that it violated the Liquidation Process

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## Issues and analysis

### Issue 1: Whether the Liquidator was justified in cancelling the e-auction after the auction was successfully …

**Ratio:** The liquidator does not have absolute discretion to cancel an e-auction once a successful

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**Reasoning:** The court reasoned that allowing the liquidator to cancel the e-auction without any valid

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**Interpretation:** The court interpreted the relevant regulations and clauses of the e-auction

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** EVA AGRO FEEDS…
- **Respondents:** Amrit Feeds…; Sunil Mohan…
- **Advocates:** Manju Bhu…; Sarbopriya…; +3 more

## Timeline

- **2019-10-22 — CIRP Admi…**: The Adjudicating Authority admitted the Corporate Debtor into Corporate Insolvency…
- **2021-02-19 — Liquidation…**: An order of liquidation was passed in respect of the Corporate Debtor, and Mr. Sunil…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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