# In the matter of Nawa Engineers Consultants Private Limited IA No. 181, 334 & 335/2019 in CP (IB) No. 198/9/HDB/2017

> NCLT judgment dated 2019-09-09. Citation: TCN-2019-NCLT-01519. Keshan Trading Corporation filed IA No. 181/2019, 334/2019, and 335/2019 against the…

- **Court:** NCLT
- **Order date:** 9 Sept 2019
- **Citation:** TCN-2019-NCLT-01519
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nawa-engineers-consultants-private-limited-ia-no-181-334-3352019-in-cp-ib-no-198-0bd78d49

## Summary

### Background

Keshan Trading Corporation filed IA No. 181/2019, 334/2019, and 335/2019 against the Liquidator, seeking similar prayers related to an e-auction. The applicant was the highest bidder for multiple lots but faced issues with the issuance of the Letter of Award (LoA) for all lots. The applicant alleged that the liquidator demanded a bribe for issuing the LoA for Lot No. 1 and would discuss the amount for Lot No. 2 after the completion of the transaction for Lot No. 1. The liquidator denied demanding any bribe and stated that the rejection of bids for Lot No. 1 & 2 was due to logistical issues and the intention to maximize the sale value for the creditors.

## Facts

Keshan Trading Corporation participated in an e-auction conducted by the Liquidator for assets of Nawa Engineers and Consultants Private Limited. Keshan Trading Corporation was the highest bidder (H1) for Lot Nos. 1 to 5 and 9 in the e-auction held on 2019-03-01. The Liquidator issued a Letter of Award (LoA) dated 2018-04-03 only for Lot Nos. 3, 4, 5, and 9. No LoA was issued for Lot Nos. 1 and 2, despite requests from Keshan Trading Corporation. Keshan Trading Corporation visited the Liquidator's office on 2019-03-05 to inquire about the delay in issuing the LoA for Lot Nos. 1 and 2. Keshan Trading Corporation alleged that the Liquidator demanded a bribe of Rs. 42,00,000 for Lot No. 1 and would discuss the amount for Lot No. 2 after the completion of the transaction

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## Issues and analysis

### Issue 1: Whether the Liquidator is to be directed to issue letter of awards in respect of Lot No's 1 & 2 …

**Ratio:** Regulation 33 of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The court reasoned that the use of the word 'shall' in provision 12 of the IBBI

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**Interpretation:** The court interpreted Regulation 33(12) of the IBBI Liquidation Process

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**Application:** The court applied the ratio to the facts by stating that since Keshan Trading

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Keshan Trading…
- **Respondents:** Nawa Engineers…; Kari Venkat…

## Timeline

- **2019-03-01 — E-auctio…**: E-auction conducted where the Applicant was the…
- **2018-04-03 — Letter of…**: Letter of Award issued only…

## 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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