# In the matter of Chincholi Sugar and Bio Industries Limited

> NCLT judgment dated 2022-06-23. Citation: TCN-2022-NCLT-02068. The application was filed by the liquidator of M/s. Chincholi Sugar and Bio Industries Limited,…

- **Court:** NCLT
- **Order date:** 23 Jun 2022
- **Citation:** TCN-2022-NCLT-02068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chincholi-sugar-and-bio-industries-limited-0d4c6725

## Summary

### Background

The application was filed by the liquidator of M/s. Chincholi Sugar and Bio Industries Limited, seeking closure of the liquidation process, reconstitution of the Board of Directors, change of status of the corporate debtor in ROC records, extinguishment of existing share capital, allotment of new shares, extinguishment of past liabilities and consequential actions, immunity from past actions of the corporate debtor, right over all the assets of the corporate debtor, and continuation or removal of licenses/approvals. The Adjudicating Authority initiated the liquidation process against the corporate debtor on 19.12.2019 and appointed the applicant as the liquidator. The liquidator issued a public announcement calling stakeholders to submit claims, verified the claims,

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## Facts

The liquidator, G. Madhusudhan Rao, filed an application for the closure of the liquidation process of M/s. Chincholi Sugar and Bio Industries Limited, a corporate debtor. The liquidation process was initiated on 19.12.2019. The corporate debtor had an integrated sugar mill, a Cogeneration Power Plant, and a distillery, all partly constructed. The liquidator issued sale notices and conducted an e-auction. Siddhasiri Souharadaa Sahakari Niyamit emerged as the successful bidder with a bid of Rs.37.46 Crores and paid the balance sale consideration. The corporate debtor was sold as a going concern. The liquidator stated that there were no deviations or non-compliances with the Insolvency and Bankruptcy Code, regulations, or circulars, and no pending applications for

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor, Chincholi Sugar and Bio Industries Ltd., …

**Ratio:** Regulation 45(3)(a) of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The court considered that the Corporate Debtor, Chincholi Sugar and Bio Industries Ltd.,

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**Interpretation:** Regulation 45(3)(a) provides a specific provision for closing the liquidation

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**Application:** Since Chincholi Sugar and Bio Industries Ltd. was sold as a going concern, the

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** G. Madhusud…
- **Respondents:** Chincholi Sugar…; M/s. Chincholi…

## Timeline

- **2019-12-19 — Initiation of…**: The Adjudicating Authority initiated the Liquidation process against the Corporate Debtor…
- **2021-08-01 — Sale Not…**: Liquidator issued sale notice in the newspapers for the sale of the Corporate Debtor as a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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