# In the matter of Terra Energy Limited IA(IBC)-1424(CHE)-2022 in IBA-446-2019]

> NCLT judgment dated 2023-07-27. Citation: TCN-2023-NCLT-05250. The application was filed by KALS Distilleries Private Limited under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 27 Jul 2023
- **Citation:** TCN-2023-NCLT-05250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/terra-energy-limited-iaibc-1424che-2022-in-iba-446-2019-0e8b95d9

## Summary

### Background

The application was filed by KALS Distilleries Private Limited under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking approval for the sale of the Corporate Debtor (Terra Energy Limited) as a going concern after emerging as the highest bidder in an e-auction.

## Facts

KALS Distilleries Private Limited filed an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016.

The application pertains to the liquidation process of M/s. Terra Energy Limited.

The liquidation of the Corporate Debtor was ordered on 17.02.2022.

An e-auction for the sale of the Corporate Debtor as a going concern was conducted on 03.08.2022.

KALS Distilleries Private Limited emerged as the highest bidder for Rs.23.05 Crores.

The Liquidator confirmed the payment of the entire sum vide his email dated 01.11.2022.

The applicant sought certain reliefs, concessions, and approvals for taking over the Corporate Debtor on a clean slate basis.

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## Issues and analysis

### Issue 1: Whether the reliefs sought by the applicant are in …

**Ratio:** Section 32A of the IBC, 2016 provides for the extinguishment of certain liabilities of

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**Reasoning:** The Tribunal examined the reliefs sought by the applicant, including the extinguishment

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**Interpretation:** The Tribunal interpreted Section 32A to allow for the extinguishment of

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**Application:** The Tribunal applied Section 32A to the facts of the case and granted the

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** KALS Distilleries…
- **Respondents:** Terra Energy…; Ramakrishnan…; +1 more
- **Advocates:** R. Vidhya S…; B. Dhan…

## Timeline

- **2022-02-17 — Liquidation…**: The Liquidation of the Corporate…
- **2022-08-03 — E-Auctio…**: The e-auction for sale of the Corporate…

## 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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