# In the matter of S. Kumars Nationwide Ltd. I.A. No. 1036-MB-C-II/-2020
in C.P (IB) No. 294-MB-C-II-2018

> NCLT judgment dated 2021-02-12. Citation: TCN-2021-NCLT-03062. This case involves an application filed by UPL Limited, the applicant, seeking directions from…

- **Court:** NCLT
- **Order date:** 12 Feb 2021
- **Citation:** TCN-2021-NCLT-03062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-kumars-nationwide-ltd-ia-no-1036-mb-c-ii-2020-in-cp-ib-no-294-mb-c-ii-2018-16d7e54b

## Summary

### Background

This case involves an application filed by UPL Limited, the applicant, seeking directions from the National Company Law Tribunal (NCLT), Mumbai, regarding an auction sale of assets belonging to S. Kumars Nationwide Limited, the corporate debtor, which is under liquidation. The applicant sought a waiver of interest demanded by the liquidator, OM Prakash Agrawal, on the balance sale consideration for the auctioned assets. The applicant contended that the delay in payment was due to the pending sub-division of the leasehold land by Gujarat Industrial Development Corporation (GIDC) and the lockdown imposed due to the COVID-19 pandemic. The liquidator, representing the corporate debtor, argued that the applicant was liable to pay interest as per the terms of the E-Auction

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## Facts

S. Kumars Nationwide Limited was undergoing liquidation, with OM Prakash Agrawal appointed as the liquidator. The liquidator initiated an e-auction for the sale of the corporate debtor's assets, including a High Value Fine Cotton Fabric Manufacturing Unit at Bharuch, Gujarat. The assets were divided into Lot 1 and Lot 2, comprising leasehold and freehold land, factory buildings, plant and machinery, and other assets. UPL Limited emerged as the successful bidder for Lot 2, submitting a bid of Rs. 43.43 crores along with an Earnest Money Deposit (EMD) of Rs. 2.84 crores. The E-Auction Notice and E-Auction Memo specified that the leasehold land was subject to sub-division by GIDC. The applicant sought clarification regarding the payment of balance sale consideration and

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## Issues and analysis

### Issue 1: Whether the delay in payment of the balance sale consideration by the applicant was attributable to …

**Ratio:** The delay in payment of balance sale consideration cannot be attributed to the Applicant,

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**Reasoning:** The NCLT found that the delay in payment was primarily due to the pending sub-division of

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**Interpretation:** The interpretation of the terms of the E-Auction Notice and the LoI, along with

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

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## Parties

- **Judges:** Janab Mohammed…; RavikumarDu…
- **Appellants:** UPL Lim…
- **Respondents:** S. Kumars…

## Timeline

- **2019-12-12 — E-Auction…**: Respondent issued an E-Auction Notice for the sale of certain assets of the Corporate…
- **2019-12-12 — E-Auction Sale Process…**: Respondent issued an E-Auction Sale Process Memorandum under the Insolvency and…

## 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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