# In the matter of Amtek Auto Limited CA Nos 567-2018 & 601 -2018 In CP (IB) No. 42-Chd-Hry-2017

> NCLT judgment dated 2019-02-13. Citation: TCN-2019-NCLT-04855. The case involves applications (CA No. 567/2018 and CA No. 601/2018) filed in connection with…

- **Court:** NCLT
- **Order date:** 13 Feb 2019
- **Citation:** TCN-2019-NCLT-04855
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amtek-auto-limited-ca-nos-567-2018-601-2018-in-cp-ib-no-42-chd-hry-2017-8ced1cc1

## Summary

### Background

The case involves applications (CA No. 567/2018 and CA No. 601/2018) filed in connection with the Corporate Insolvency Resolution Process (CIRP) of Amtek Auto Limited. Corporation Bank, as a financial creditor, initiated the CIRP under Section 7 of the Insolvency and Bankruptcy Code (IBC). The resolution plan submitted by Liberty House Group Pte Ltd (LHG) was approved, but LHG allegedly failed to implement the plan's terms. The Committee of Creditors (CoC) sought reinstatement to run the corporate debtor and grant time for a fresh resolution process. LHG contested the allegations, claiming misrepresentation and irregularities in the information provided during the CIRP. The core issue revolves around LHG's failure to meet financial commitments under the approved

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## Facts

Corporation Bank initiated CIRP against Amtek Auto Limited under Section 7 of IBC due to payment defaults. The petition was admitted on 2017-07-24, imposing a moratorium. Mr. Dinkar T. Venkatasubramanian was appointed as Interim Resolution Professional and later confirmed as Resolution Professional. Liberty House Group Pte Ltd (LHG) submitted a resolution plan approved by the Tribunal on 2018-07-25. LHG allegedly failed to honor its commitments, including upfront payment of INR 3,310 Crores and infusion of INR 350 Crores. LHG also failed to furnish a performance guarantee of ₹100 Crore and create an escrow equivalent to 15% of the upfront cash pay-out. Corporation Bank invoked the bid bond guarantee, leading LHG to file a civil suit seeking an injunction. LHG claimed

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## Issues and analysis

### Issue 1: Whether Liberty House Group Pte Ltd (LHG) knowingly contravened the terms of the approved …

**Ratio:** The ratio is based on the principle that a resolution applicant is bound by the terms of

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**Reasoning:** The court reasoned that LHG failed to make the upfront payment, furnish a performance

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**Interpretation:** The interpretation is that the resolution applicant's obligations under the

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

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Corporatio…
- **Respondents:** Amtek Auto…

## Timeline

- **2017-07-24 — Petition Ad…**: Corporation Bank's petition under Section 7 of the IBC against Amtek Auto Limited was…
- **2017-07-27 — Appointment…**: Mr. Dinkar T. Venkatasubramanian was…

## 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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