# In the matter of Abhishek Corporation Ltd.

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02887. The case involves an application (I.A. 4554/2023) filed by Mahaalaxmi Textile, the applicant…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02887
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhishek-corporation-ltd-45aa2475

## Summary

### Background

The case involves an application (I.A. 4554/2023) filed by Mahaalaxmi Textile, the applicant and successful bidder, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking various reliefs related to the acquisition of Abhishek Corporation Ltd. as a going concern. The corporate debtor, Abhishek Corporation Ltd., was admitted into liquidation on 11.03.2019. Several e-auction notices were issued, and Mahaalaxmi Textile was declared the successful bidder on 13.09.2023. The applicant seeks reliefs and concessions to facilitate the smooth transfer and operation of the corporate debtor.

## Facts

Mahaalaxmi Textile, a partnership firm in the textile business, participated in the e-auction for the sale of Abhishek Corporation Ltd., a corporate debtor undergoing liquidation. Abhishek Corporation Ltd. was admitted to liquidation on 11.03.2019. Mr. Ashish Mukund Chandak was initially appointed as the liquidator but was later replaced by Mr. Kshitiz Gupta due to health issues. Several e-auction notices were issued, and Mahaalaxmi Textile submitted the highest bid of Rs. 40.45 crores and was declared the successful bidder on 13.09.2023. The applicant paid 25% of the bid amount (Rs. 10,11,25,000/-). The applicant sought various reliefs and concessions to facilitate the transfer of ownership and operation of the corporate debtor as a going concern, including waivers on

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## Issues and analysis

### Issue 1: Whether the Tribunal is empowered to grant necessary reliefs in relation to the Corporate Debtor, …

**Ratio:** Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 empowers the Tribunal to

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**Reasoning:** The Tribunal reasoned that it has the authority to grant reliefs necessary for the

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**Interpretation:** This section provides broad powers to the NCLT to address legal and factual

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**Application:** The Tribunal applied this principle by considering and granting certain reliefs

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Mahaalaxmi…
- **Respondents:** Abhishek Corporati…; Kshitiz…

## Timeline

- **2019-03-11 — Liquidation…**: Liquidation order was passed…
- **2019-03-11 — Appointment of…**: Mr. Ashish Mukund Chandak was…

## 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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