# In the matter of Adya Oils & Chemicals Ltd.

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00187. The case involves an application (I.A. No. 4388 of 2023) filed by the liquidator, Ms. Rekha…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00187
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adya-oils-chemicals-ltd-515c0572

## Summary

### Background

The case involves an application (I.A. No. 4388 of 2023) filed by the liquidator, Ms. Rekha Shah, of Adya Oils and Chemicals Ltd., 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 core issue revolves around the auction of assets, specifically land blocks 77 & 79 and a building in block 83, and whether the auction should be cancelled, completed, or deferred given the interim orders passed by the tribunal.

## Facts

Ms. Rekha Shah, the liquidator of Adya Oils and Chemicals Ltd., filed I.A. No. 4388 of 2023 seeking directions regarding the auction of assets. The liquidator had initiated the auction of land blocks 77 & 79 and a building in block 83. The auction for the building received a bid of Rs. 19 Lakhs, exceeding the reserve price of Rs. 18 Lakhs. The liquidator sought clarification on the interim stay granted in I.A. 883 of 2022, which had restrained the liquidator from taking any action. The tribunal had passed several interim orders, but there were periods without specific dated bound orders for continuation. The respondent contended that the liquidator was in contempt of court. The applicant relied on a Supreme Court order stating that interim stays expire after six

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## Issues and analysis

### Issue 1: Whether the interim stay granted by the Tribunal prevented the Liquidator from proceeding with the …

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

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**Reasoning:** The Tribunal considered the series of interim orders passed, noting that there were

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**Interpretation:** The Supreme Court's ruling clarifies that interim stays are not indefinite and

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**Application:** The Tribunal applied the Supreme Court's ruling to the facts of the case,

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## Parties

- **Judges:** Reeta K…; SANJIV…
- **Appellants:** Rekha…
- **Respondents:** Adya Oils &…; Stressed Assets…

## Timeline

- **2019-01-01 — C.P. (IB) No. 2392 of…**: Corporate Insolvency Resolution Process…
- **2022-03-09 — SCC Meet…**: Sale of building discussed in the SCC…

## 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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