# In the matter of Assam Company India Ltd. I A No. 29-2018 in CP (IB) -20-GB-2017

> NCLT judgment dated 2018-05-21. Citation: TCN-2018-NCLT-01377. James Warren Tea Ltd., an applicant, filed an application under Section 60(5) of the Insolvency…

- **Court:** NCLT
- **Order date:** 21 May 2018
- **Citation:** TCN-2018-NCLT-01377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/assam-company-india-ltd-i-a-no-29-2018-in-cp-ib-20-gb-2017-7aa11dc2

## Summary

### Background

James Warren Tea Ltd., an applicant, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the invitation of Expression of Interest (EOI) dated 11-04-2018 issued by the Resolution Professional (RP) for Assam Company India Ltd. The applicant questioned the eligibility criteria stipulated in the EOI, claiming they are irrational, unreasonable, and discriminatory, potentially excluding the applicant and other similarly situated entities from the bidding process.

## Facts

James Warren Tea Ltd., a listed company, applied under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the EOI issued by the RP for Assam Company India Ltd, which is undergoing CIRP. The EOI set eligibility criteria for prospective resolution applicants (PRAs), including a minimum tangible net worth of INR 400 crores and a minimum availability of surplus funds of INR 50 crores for Category A PRAs. James Warren Tea Ltd. argued that these criteria are irrational, unreasonable, and discriminatory, excluding many potential PRAs, particularly tea companies. They also alleged that the RP violated regulations by sharing sensitive information with the COC during the preparation of eligibility criteria. The RP defended the criteria, citing sound

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## Issues and analysis

### Issue 1: Whether the eligibility criteria stipulated in the EOI, specifically the minimum tangible net worth …

**Ratio:** The Adjudicating Authority has a limited scope to interfere with the decisions of the RP

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**Reasoning:** The NCLT found that the RP had assigned good reasons for setting the minimum availability

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**Interpretation:** The court interpreted that the RP and COC have the authority to set eligibility

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**Application:** The NCLT applied the ratio to the facts of the case, finding that the applicant

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## Parties

- **Judges:** P. K. S…
- **Appellants:** James Warren Tea…
- **Respondents:** Assam Company…; SREI Infrastructur…

## Timeline

- **2017-10-26 — CIRP Star…**: CIRP started in accordance with…
- **2018-02-28 — 5th COC M…**: RP proposed terms of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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