# In the matter of Varrsana Ispat Limited I.A.(IB) No.-KB-2020
In C.P. (IB) No. 543-KB-2017

> NCLT judgment dated 2020-07-22. Citation: TCN-2020-NCLT-00983. The case involves an application filed by the liquidator of Varrsana Ispat Limited, which is…

- **Court:** NCLT
- **Order date:** 22 Jul 2020
- **Citation:** TCN-2020-NCLT-00983
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varrsana-ispat-limited-iaib-no-kb-2020-in-cp-ib-no-543-kb-2017-4904ea37

## Summary

### Background

The case involves an application filed by the liquidator of Varrsana Ispat Limited, which is undergoing liquidation, seeking permission to sell the company's assets that were attached by the Directorate of Enforcement (ED). The Corporate Insolvency Resolution Process (CIRP) was initiated against Varrsana Ispat Limited on 16/11/2017, and liquidation was ordered on 06/08/2019 due to the absence of a resolution plan. The ED had attached the corporate debtor's assets based on allegations that they were proceeds of crime related to offenses committed by REI Agro Limited, a group company of the corporate debtor. The liquidator argues that Section 32A of the Insolvency and Bankruptcy Code (IBC), as amended, provides immunity against actions against the corporate debtor's

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Varrsana Ispat Limited on 16/11/2017, and liquidation was ordered on 06/08/2019 due to the absence of a resolution plan. The Directorate of Enforcement (ED) attached the corporate debtor's assets on 10/07/2017, alleging that they were proceeds of crime related to offenses committed by REI Agro Limited, a group company of the corporate debtor. The attached assets include land, building structures, and plant and machinery located in Varrsana, District-Kutch. The liquidator, Mr. Anil Goel, filed an application seeking permission to sell the attached assets, arguing that Section 32A of the Insolvency and Bankruptcy Code (IBC) provides immunity against actions against the corporate debtor's property.

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## Issues and analysis

### Issue 1: Whether Section 32A of the Insolvency and Bankruptcy Code, 2016 is applicable to liquidation …

**Ratio:** Section 32A provides immunity against prosecution of the corporate debtor and prevents

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**Reasoning:** The court reasoned that the object behind the insertion of Section 32A was to prevent

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**Interpretation:** Section 32A is interpreted to apply to both CIRP and liquidation proceedings,

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**Application:** The court applied this ratio to the case at hand, finding that Section 32A is

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** Varrsana Ispat…; Deputy Director,…

## Timeline

- **2017-11-16 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Varrsana Ispat…
- **2017-07-10 — Provisional Attachment…**: Provisional Attachment order No. 08/2017 was issued by the Respondent wherein the assets…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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