# In the matter of Shree Bhawani Paper Mills Ltd. CP No. (IB) 110-ALD-2017

> NCLT judgment dated 2021-11-01. Citation: TCN-2021-NCLT-00655. The case involves an application (IA NO.314/2021) filed by Mr. Akshat Tandon, who is aggrieved…

- **Court:** NCLT
- **Order date:** 1 Nov 2021
- **Citation:** TCN-2021-NCLT-00655
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-bhawani-paper-mills-ltd-cp-no-ib-110-ald-2017-924ae5e6

## Summary

### Background

The case involves an application (IA NO.314/2021) filed by Mr. Akshat Tandon, who is aggrieved by the Liquidator's decision not to consider a scheme of arrangement/compromise proposed by them concerning the Corporate Debtor. The applicant alleges that the Liquidator did not follow the procedures outlined in the Liquidation Process Regulations before presenting the scheme to the Stakeholders' Consultation Committee, which deemed it unfeasible. The Liquidator proceeded with an auction, and the applicant seeks a stay on the auction and a direction for the Liquidator to consider the scheme under Section 230 of the Companies Act, 2013. Another application (IA NO.315/2021) was filed by the Liquidator seeking police protection while visiting the Corporate Debtor's premises.

## Facts

Mr. Akshat Tandon filed an application (IA NO.314/2021) because he was aggrieved by the Liquidator's decision not to consider a scheme of arrangement/compromise that he proposed for the Corporate Debtor. He claims the Liquidator did not follow proper procedures under the Liquidation Process Regulations. The Liquidator presented the scheme to the Stakeholders' Consultation Committee, which found it unfeasible. The Liquidator proceeded with an auction, with the notice published on 2021-09-25, and the auction itself on 2021-10-25. Tandon requested a stay on the auction and for the Liquidator to consider the scheme under Section 230 of the Companies Act, 2013. The Liquidator filed a separate application (IA NO.315/2021) seeking police protection while visiting the

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## Issues and analysis

### Issue 1: Whether the Liquidator's decision not to consider the scheme of arrangement/compromise proposed by …

**Ratio:** The best interest of the corporate debtor lies in exploring viable and feasible schemes

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**Reasoning:** The court believed that exploring the scheme was in the best interest of the corporate

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**Interpretation:** The court interpreted that the primary objective of the liquidation process is

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**Application:** The court directed the applicant to file the scheme with the Liquidator to

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** Akshat T…
- **Respondents:** SHREE BHAWANI…

## Timeline

- **2021-09-25 — Auction Notice…**: Auction notice was…
- **2021-10-25 — Auction…**: The Liquidator…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230 — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

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