# In the matter of Atlas Alloy (India) Private Limited

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01359. This case involves an Interim Application (IA No. 522/JPR/2023) filed by Mr. Jai Agarwal, an…

- **Court:** NCLT
- **Order date:** 6 Oct 2023
- **Citation:** TCN-2023-NCLT-01359
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/atlas-alloy-india-private-limited-706388b7

## Summary

### Background

This case involves an Interim Application (IA No. 522/JPR/2023) filed by Mr. Jai Agarwal, an unsuccessful bidder, seeking to quash an e-auction. The e-auction was for assets of Atlas Alloys (India) Private Limited, a Corporate Debtor undergoing liquidation. The applicant alleges illegal collusion and lack of transparency in the e-auction process, claiming that the liquidator colluded with another bidder to fetch a lower price for the assets. The applicant also alleges that the liquidator made illegal demands. The liquidator denies these allegations, stating that the applicant had ample opportunity to participate in the e-auction and that the process was conducted fairly.

## Facts

Mr. Jai Agarwal, an unsuccessful bidder, filed an Interim Application (IA) seeking to quash an e-auction for the assets of Atlas Alloys (India) Private Limited, a Corporate Debtor in liquidation. The liquidation order was passed on 2021-03-02. The e-auction was for land and building situated at Plot No. G – 78-79 and part of G - 80, Industrial Area, Beawar. The applicant alleges that the liquidator colluded with another bidder and made illegal demands. The applicant's representative visited the liquidator's office during the bidding time. The applicant initially bid Rs. 1,56,05,000/- which was revised in increments of Rs. 25,000/- at the insistence of the Respondent and his staff. The applicant was the sole highest bidder until three minutes before the deadline. The

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## Issues and analysis

### Issue 1: Whether the e-auction process was vitiated …

**Ratio:** The principle of fairness and transparency in e-auction processes is paramount to ensure

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**Reasoning:** The court found no evidence to support the applicant's allegations of collusion and lack

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**Interpretation:** The court interpreted the e-auction process as a whole, considering the

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**Application:** The court applied the principle of fairness and transparency to the specific

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Jai Aga…
- **Respondents:** Atlas Alloys…; Satyendra Prasad…
- **Advocates:** Avin Chha…; Amol…

## Timeline

- **2021-03-02 — Liquidation…**: Order for liquidation was passed…
- **2023-08-11 — Public Annou…**: Public announcement was made on 11.08.2023 wherein it was stated that e-auction for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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