# 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-01349. 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-01349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amrit-feeds-limited-iaib-no-663-kb-2021-in-cp-ib-440-kb-2018-91858702

## 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) for Amrit Feeds Limited was initiated on October 22, 2019, and a liquidation order was passed on February 19, 2021, appointing Sunil Mohan Acharya as the liquidator. The liquidator forwarded a sale notice for the assets of Amrit Feeds Limited, and EVA Agro Feeds participated in the e-auction, was declared the successful bidder, but the auction was subsequently cancelled by the liquidator under clause 3(k) of the disclaimer clause in the e-auction process document.

## Facts

On October 22, 2019, the Corporate Insolvency Resolution Process (CIRP) was initiated for Amrit Feeds Limited. On February 19, 2021, a liquidation order was passed, and Mr. Sunil Mohan Acharya was appointed as the liquidator. On June 7, 2021, the liquidator sent a sale notice to EVA Agro Feeds Private Limited, the applicant, for the assets of Amrit Feeds Limited. EVA Agro Feeds submitted a bid application form on July 16, 2021, and deposited an Earnest Money Deposit (EMD) of Rs. 1 crore on July 17, 2021. On July 19, 2021, EVA Agro Feeds submitted a bid of Rs. 10 crore, and the bidding ended on July 20, 2021. EVA Agro Feeds received an e-auction certificate confirming they had won the auction. On July 21, 2021, the liquidator cancelled the e-auction under clause 3(k) of

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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 the discretion to cancel an auction or revisit the

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**Reasoning:** The court reasoned that there was no evidence of collusion between the highest bidder and

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**Interpretation:** The court interpreted Regulation 33(3) of the Liquidation Regulation to mean

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

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** EVA Agro Feeds…
- **Respondents:** Amrit Feeds…; Sunil Mohan…

## Timeline

- **2019-10-22 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2021-02-19 — Liquidation…**: A liquidation order was passed for Amrit Feeds Limited, and Mr. Sunil Mohan Acharya was…

## 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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