# In the matter of Amrit Feeds Ltd.

> NCLT judgment dated 2024-01-15. Citation: TCN-2024-NCLT-03066. The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Jan 2024
- **Citation:** TCN-2024-NCLT-03066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amrit-feeds-ltd-3f75a75a

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, concerning the liquidation of Amrit Feeds Ltd. The applicant, Harish Bagla, a director of the suspended board of Amrit Feeds, challenged the liquidator's decision to declare Respondent No. 2, Auura Agrotech Pvt. Ltd., as the successful bidder for a property in Assam. The applicant argued that Auura Agrotech is a related party due to connections between its promoters and the applicant's maternal uncle, Vijay Kumar Ghidia, who was also a promoter of Amrit Feeds. The liquidator sought to sell three immovable properties of the corporate debtor situated in Bihar, West Bengal and Assam. The applicant sought to restrict the sale of the immovable property of the corporate debtor

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## Facts

Amrit Feeds Ltd. was admitted into CIRP on October 22, 2019, and subsequently went into liquidation. Harish Bagla, a director of the suspended board, filed an application challenging the liquidator's decision to sell a property in Assam to Auura Agrotech Pvt. Ltd. He contended that Auura Agrotech was a related party because its promoters were related to Vijay Kumar Ghidia, who was both the applicant's maternal uncle and a promoter of Amrit Feeds. Vijay Kumar Ghidia was a director and shareholder of the corporate debtor until 2008. The applicant's mother, Chanda Bagla, was adopted by her father's elder brother, Radhakrishna Ghidia. The liquidator issued a sale notice dated March 2, 2022, to sell three immovable properties of the corporate debtor situated in Bihar, West

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## Issues and analysis

### Issue 1: Whether Auura Agrotech Pvt. Ltd. is a 'related party' to Amrit Feeds Ltd. under Section 29A of the …

**Ratio:** Section 29A of the IBC disqualifies persons related to the corporate debtor from

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**Reasoning:** The court considered the relationship between Vijay Kumar Ghidia, the maternal uncle of

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**Interpretation:** The court interpreted Section 29A and the definition of 'related party'

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**Application:** The court applied the ratio to the facts, finding that Vijay Kumar Ghidia was

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Harish…
- **Respondents:** Amrit Feed…; Sunil Mohan…

## Timeline

- **2018-01-01 — C.P. (IB) No 44…**: Case filed under the…
- **2019-10-22 — Admission in…**: Amrit Feeds admitted…

## 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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