# In the matter of Abhishek Corporation Ltd.

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02901. 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-02901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhishek-corporation-ltd-50578716

## 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, was admitted into liquidation on 11.03.2019. Multiple e-auction notices were issued, and Mahaalaxmi Textile was declared the successful bidder on 13.09.2023 after submitting the highest bid. The applicant seeks concessions and reliefs to facilitate the smooth transfer and operation of the corporate debtor.

## Facts

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

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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 (IBC) empowers the Tribunal to

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**Reasoning:** The Tribunal has the authority to grant reliefs that are necessary for the effective

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**Interpretation:** The interpretation of Section 60(5)(c) allows the Tribunal to address any legal

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**Application:** In this case, the Tribunal's power under Section 60(5)(c) is invoked to address

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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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