# In the matter of LML Limited IA No. 32-2021 in CP(IB) No. 55-ALD-2017

> NCLT judgment dated 2021-07-14. Citation: TCN-2021-NCLT-01758. The application was filed by the Liquidator under Section 60(5)(c) of the IBC 2016, read with…

- **Court:** NCLT
- **Order date:** 14 Jul 2021
- **Citation:** TCN-2021-NCLT-01758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lml-limited-ia-no-32-2021-in-cpib-no-55-ald-2017-31b75ee0

## Summary

### Background

The application was filed by the Liquidator under Section 60(5)(c) of the IBC 2016, read with Regulation 33(1) and Schedule I of the IBBI (Liquidation Process) Regulations, 2016, seeking permission to conduct the auction of the assets of the Corporate Debtor by reducing the reserve price by 10% each time as each subsequent auction fails. The Adjudicating Authority ordered liquidation of the corporate debtor on 2018-03-23 and appointed Mr. Arun Gupta as the liquidator on 2018-04-09. The liquidator constituted a monitoring committee and issued a sale notice along with a public announcement dated 2018-09-27 for the first auction held on 2018-10-31. One major immovable asset remains unsold after 11 auctions. The liquidator also published a notice for inviting EOI in

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## Facts

The Corporate Debtor, M/s LML Limited, is undergoing liquidation. The liquidator, Arun Gupta, filed an application seeking permission to reduce the reserve price for the auction of the Corporate Debtor's assets. The liquidation process was initiated prior to 2019-07-25. The liquidator has been unable to sell one major immovable asset despite conducting 11 auctions. The liquidator also invited Expression of Interest (EOI) for the land and building, but no EOI was received. The liquidator argues that amendments to the IBBI (Liquidation Process) Regulations 2016, which allow for a greater reduction in the reserve price, are not applicable to this case because the liquidation process commenced before the effective date of the amendments. The Adjudicating Authority had

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can permit the Liquidator to reduce the reserve price by 10% in …

**Ratio:** The Adjudicating Authority has the power to oversee and facilitate the liquidation

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**Reasoning:** The Adjudicating Authority considered the fact that the property remains unsold despite

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**Interpretation:** The Adjudicating Authority interpreted the relevant provisions of the IBC and

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**Application:** The Adjudicating Authority applied its power to permit the Liquidator to reduce

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## Parties

- **Judges:** Rajesh Daya…
- **Respondents:** M/s. L.M.L.…

## Timeline

- **2018-03-23 — Liquidation…**: Adjudicating Authority ordered…
- **2018-04-09 — Appointment of…**: Mr. Arun Gupta…

## 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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