# In the matter of Chadalavada Infratech Limited

> NCLT judgment dated 2023-08-07. Citation: TCN-2023-NCLT-02139. The case involves an application (IA 1059/2023) filed by the successful bidders of Chadalavada…

- **Court:** NCLT
- **Order date:** 7 Aug 2023
- **Citation:** TCN-2023-NCLT-02139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chadalavada-infratech-limited-6410c496

## Summary

### Background

The case involves an application (IA 1059/2023) filed by the successful bidders of Chadalavada Infratech Limited/Corporate Debtor under Section 60(5)(c) of the Insolvency & Bankruptcy Code 2016, seeking certain reliefs to kickstart the business of the Corporate Debtor. The Tribunal had previously ordered liquidation of the Corporate Debtor on 11.04.2022 and appointed a Liquidator. The Liquidator issued a sale notice dated 25.12.2022, and an e-auction was held on 06.01.2023, where the Consortium of RVR Enterprises, Jasti Venkat Rao, and Ch. Rama Krishna were declared successful bidders. The Liquidator issued a Letter of Intent (LOI) on 07.01.2023, and the applicants requested certain reliefs and concessions from the Tribunal via letter dated 07.04.2023, leading to

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## Facts

The Corporate Debtor, Chadalavada Infratech Ltd, underwent liquidation, and a Liquidator was appointed on 11.04.2022. A sale notice was issued on 25.12.2022, leading to an e-auction on 06.01.2023. The Consortium of RVR Enterprises, Jasti Venkat Rao, and Ch. Rama Krishna emerged as the successful bidders with a reserve price of Rs. 80 lakhs. A Letter of Intent (LOI) was issued on 07.01.2023, outlining payment terms, including a 25% initial payment and the balance sale consideration. The total sale consideration with interest amounted to Rs. 80,81,789/-, and a sale certificate was issued on 06.04.2023. The successful bidders then requested certain reliefs and concessions from the Tribunal to kickstart the business, leading to the filing of IA No. 1059/2023. The

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## Issues and analysis

### Issue 1: Whether the successful bidder is entitled for …

**Ratio:** The ratio is based on the Tribunal's power to grant necessary immunities or protection

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**Reasoning:** The Tribunal reasoned that the Corporate Debtor was sold as an ongoing concern, and the

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**Interpretation:** The interpretation involves the Tribunal's understanding of its powers under

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Consortium of RVR…
- **Respondents:** Chadalavada…; G. Madhusud…

## Timeline

- **2022-04-11 — Liquidation…**: Tribunal passed an order of…
- **2022-12-25 — Sale Not…**: Issue of sale notice for the sale of the Corporate Debtor as a whole and as a going…

## 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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