# In the matter of Tag Offshore Ltd. MA-75-2020 in CP-54-I & B-2019

> NCLT judgment dated 2020-06-05. Citation: TCN-2020-NCLT-01236. The case involves a dispute regarding the auction of twelve vessels belonging to a corporate…

- **Court:** NCLT
- **Order date:** 5 Jun 2020
- **Citation:** TCN-2020-NCLT-01236
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tag-offshore-ltd-ma-75-2020-in-cp-54-i-b-2019-64b92667

## Summary

### Background

The case involves a dispute regarding the auction of twelve vessels belonging to a corporate debtor. An earlier auction process was initiated but became redundant due to unforeseen circumstances, including the Covid-19 situation and the early arrival of the monsoon. Greatship (India) Limited, an intending bidder, had previously raised objections to the auction process. The liquidator sought an equitable order to auction the vessels.

## Facts

The liquidator of Tag Offshore Ltd. filed an application (IA-994/2020) seeking an order to auction vessels due to the Covid-19 situation and the arrival of the monsoon. An earlier auction process for twelve vessels of the corporate debtor became redundant. Greatship (India) Limited, an intending bidder, had previously objected to the auction by filing MA-75/2020. The NCLT had heard the matter and reserved it for orders. Greatship (India) Limited's counsel stated that they would not object to the liquidator proceeding with an e-auction, provided it is initiated in accordance with Schedule-1 of the Liquidation Process Regulations, 2016. The liquidator's counsel submitted that the dispute in MA-75/2020 would not affect the fresh auction process. The court considered the

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## Issues and analysis

### Issue 1: Whether the liquidator should be permitted to conduct a fresh auction of the twelve vessels …

**Ratio:** The court has the power to direct the liquidator to conduct a fresh auction, especially

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**Reasoning:** The court considered the unforeseen circumstances (Covid-19 and monsoon) that rendered

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**Interpretation:** This issue involves interpreting the court's power to facilitate the

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**Application:** Given the changed circumstances and the concession by Greatship (India)

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## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** Sudip Bhatt…
- **Respondents:** Tag Offsho…; Greatship India…

## Timeline

- **2020-01-01 — Filing of MA-…**: Greatship (India) Limited filed MA-75/2020 objecting to the auction of vessels before…
- **2020-01-01 — NCLT Hea…**: NCLT heard the matter related to…

## 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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