# In the matter of Talwar Agencies Pvt. Ltd. (IB)-627(ND)2018

> NCLT judgment dated 2019-06-12. Citation: TCN-2019-NCLT-02951. The case involves the liquidation of the Corporate Debtor's stock-in-trade. The stock was…

- **Court:** NCLT
- **Order date:** 12 Jun 2019
- **Citation:** TCN-2019-NCLT-02951
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/talwar-agencies-pvt-ltd-ib-627nd2018-ab509810

## Summary

### Background

The case involves the liquidation of the Corporate Debtor's stock-in-trade. The stock was permitted to be sold by private auction after no bids were received in two public auctions. The liquidator believed a private sale was necessary due to the deteriorating value of the stock. A sum of Rs. 15 lakhs was received from the sale. Objections were raised by the ex-Directors and a Financial Creditor (Bank) regarding the sale. The Bank suggested the ex-Director could have arranged a better sale. The liquidator relied on email correspondence indicating an opportunity was given to arrange a settlement.

## Facts

The Corporate Debtor's stock-in-trade was sold via private auction after two unsuccessful public auctions. The liquidator cited the deteriorating value of the stock as justification for the private sale. Rs. 15 lakhs was received from the sale. Ex-Directors and a Financial Creditor (Bank) raised objections. The Bank claimed the ex-Director could have arranged a better sale. The liquidator relied on email correspondence showing an opportunity for settlement was provided. During the moratorium period, stock-in-trade worth approximately Rs. 17 lakhs was disposed of by the ex-Director. Financial statements reflected scrap worth Rs. 1 crore, but its physical verification was lacking. The liquidator stated that the sale proceeds were insufficient to meet the liquidation

…

## Issues and analysis

### Issue 1: Whether the objections raised by the ex-Directors and the Financial Creditor regarding the sale of …

**Ratio:** The principle that objections cannot be entertained at a stage when the sale has already

…

**Reasoning:** The court reasoned that public announcements were made regarding both public and private

…

**Interpretation:** This legal issue concerns the timing of objections in liquidation proceedings.

…

**Application:** The ratio and reasoning were applied to the specific facts, considering the

…

## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Respondents:** Khera Enter…; Arjun T…
- **Advocates:** Maya G…; Arjun T…

## Timeline

- **2019-05-13 — Email Corresp…**: Liquidator gave an…
- **2019-06-12 — Hearing…**: Hearing before the New Delhi Bench of…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/talwar-agencies-pvt-ltd-ib-627nd2018-ab509810