# In the matter of Adya Oils & Chemicals Ltd.

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00180. The case involves an application (I.A. No. 4388 of 2023) filed by the liquidator of Adya Oils…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00180
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adya-oils-chemicals-ltd-0f8acce2

## Summary

### Background

The case involves an application (I.A. No. 4388 of 2023) filed by the liquidator of Adya Oils and Chemicals Ltd., Ms. Rekha Shah, seeking directions against Stressed Assets Stabilisation Fund under Section 60(5) of the Insolvency & Bankruptcy Code, 2016. The liquidator sought clarification on an interim stay granted in I.A. 883 of 2022. The respondent contended that the liquidator attempted to cover up contemptuous conduct by disposing of secured assets hurriedly, deleting land blocks from the asset memorandum, and individually auctioning remaining blocks, which deteriorated the asset value. The liquidator proceeded with a public auction of assets, including land blocks and a dilapidated building, after seeking legal opinion, aiming to maximize value and close the

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## Facts

Ms. Rekha Shah, the liquidator of Adya Oils and Chemicals Ltd., filed I.A. 4388 of 2023 seeking directions against Stressed Assets Stabilisation Fund. The liquidator sought clarification on an interim stay granted in I.A. 883 of 2022. The interim stay was initially granted on 05.04.2022, preventing the liquidator from taking any action regarding the auction sale of assets. This stay was extended on 11.04.2022 and 06.06.2022. However, there were periods without specific dated orders for the continuation of the interim relief. The liquidator proceeded with a public auction of assets, including land blocks and a dilapidated building, after seeking legal opinion. The auction for the building structure received a bid of Rs. 19 Lakhs against a reserve price of Rs. 18 Lakhs.

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## Issues and analysis

### Issue 1: Whether the liquidator was in contempt of court by proceeding with the auction sale of assets …

**Ratio:** The Hon'ble Supreme Court in Asian Resurfacing of Road Agency Pvt. Ltd. & Anr. Vs

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**Reasoning:** The court examined the dates of the interim orders passed in I.A. 883 of 2022 and found

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**Interpretation:** The Supreme Court's ruling in Asian Resurfacing clarifies that interim orders

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**Application:** Applying the Supreme Court's ratio to the facts, the court determined that the

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## Parties

- **Judges:** Reeta K…; SANJIV…
- **Appellants:** Rekha…
- **Respondents:** Adya Oils &…; Adya Oils and…; +1 more
- **Advocates:** Devarajan…; Shaila…; +1 more

## Timeline

- **2019-01-01 — C.P. (IB) No. 2392 of…**: Corporate Insolvency Resolution Process…
- **2022-04-05 — Interim Stay…**: The Tribunal directed that no action be taken by the Liquidator regarding the auction…

## 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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