# In the matter of Carnation Auto India Ltd. IB No. (IB)-302(ND)/2017

> NCLT judgment dated 2018-01-15. Citation: TCN-2018-NCLT-01938. The Resolution Professional (RP) filed an application seeking directions in response to…

- **Court:** NCLT
- **Order date:** 15 Jan 2018
- **Citation:** TCN-2018-NCLT-01938
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/carnation-auto-india-ltd-ib-no-ib-302nd2017-4d9f7dde

## Summary

### Background

The Resolution Professional (RP) filed an application seeking directions in response to objections raised by the Insolvency and Bankruptcy Board of India (IBBI) regarding the Expression of Interest (EOI) published for the resolution process. The IBBI raised objections concerning discrepancies in the advertisement, including a typographical error in the date of submission for the Resolution Plan, and the format of the EOI. The RP resisted these objections, arguing that a corrigendum would suffice to address the typographical error and that the IBBI's objections would lead to unnecessary expenditure.

## Facts

The Resolution Professional (RP) published an Expression of Interest (EOI) for the resolution process of Carnation Auto India Ltd. The Insolvency and Bankruptcy Board of India (IBBI) raised objections to the EOI, citing discrepancies, including a typographical error in the date of submission for the Resolution Plan, and the format of the EOI. The RP resisted the objections, arguing that a corrigendum would suffice and that a fresh publication would lead to unnecessary expenditure. The Financial Creditor, with a claim quantified at 82%, supported the RP's position, stating that the EOI was issued as per normal procedure and that there is no specific format under the IBBI guidelines. The IBBI's objections were duly replied to by the RP vide his letter dated 01.01.2018.

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## Issues and analysis

### Issue 1: Whether the objections raised by the IBBI regarding the Expression of Interest (EOI) published by …

**Ratio:** The principle is that regulatory bodies like IBBI have the authority to ensure compliance

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**Reasoning:** The court considered the arguments presented by both the IBBI and the RP. It acknowledged

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**Interpretation:** This issue involves interpreting the scope of the IBBI's regulatory authority

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**Application:** In this specific case, the court applied the principle by directing the RP to

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## Parties

- **Judges:** Deepa Kr…; Ina Mal…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** Carnation Auto…; Swarupama…

## Timeline

- **2017-12-26 — Correspondence Received…**: The RP received correspondence stating that the advertisement had certain discrepancies,…
- **2018-01-01 — RP's Letter…**: The RP replied to the objections of the…

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