# 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-03058. 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-03058
- **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-c17396af

## 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. The applicant sought a waiver of interest demanded by the liquidator, OM Prakash Agrawal, on the balance sale consideration for Lot 2, which comprised leasehold and freehold land. 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, insisted on charging interest as per the terms of the E-Auction Notice and the Letter

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## Facts

1. An e-auction was conducted for the sale of assets of S. Kumars Nationwide Limited, the Corporate Debtor, divided into Lot 1 and Lot 2.
2. UPL Limited emerged as the successful bidder for Lot 2, which comprised leasehold and freehold land.
3. The E-Auction Notice and Memo specified that the assets were being sold on an "As is where is", "As is what is", "Whatever there is", and "No recourse" basis.
4. The last date for submitting bids was January 13, 2020, later extended to January 16, 2020, and the e-auction was conducted on January 16, 2020.
5. An Earnest Money Deposit (EMD) of Rs. 2,84,00,000/- was required for Lot 2.
6. The successful bidder was required to deposit the balance sale consideration within 90 days from the date of

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## Issues and analysis

### Issue 1: Whether the applicant is liable to pay interest on the delayed payment of the balance sale …

**Ratio:** The principle is that interest cannot be charged for delays caused by factors not

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

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**Interpretation:** The interpretation is that the terms of the auction documents should be

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Janab Mohammed…; Ravikumar…; +1 more
- **Appellants:** UPL Lim…
- **Respondents:** S. Kumars…

## Timeline

- **2019-12-12 — E-Auction…**: E-Auction Notice issued for the sale…
- **2020-01-03 — Applicant Seeks…**: Applicant seeks clarification regarding payment of balance sale consideration 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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