# In the matter of East Coast Energy Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03130. The case pertains to IA (IBC)/1931/2023 filed in CP (IB) No.23/7/HDB/2018, concerning the…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03130
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/east-coast-energy-private-limited-9088faa4

## Summary

### Background

The case pertains to IA (IBC)/1931/2023 filed in CP (IB) No.23/7/HDB/2018, concerning the liquidation of East Coast Energy Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on April 3, 2018. With no resolution plan received, the Committee of Creditors recommended liquidation, approved on April 22, 2019. The appointed Liquidator attempted to sell the company as a going concern but received no Expressions of Interest (EOI). Subsequently, the Liquidator tried to sell the assets in four lots, successfully selling two. The remaining assets, 'Township' and 'Miscellaneous Assets', remained unsold after multiple auctions. Stakeholders then decided to explore a private sale.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against East Coast Energy Private Limited on April 3, 2018. As no resolution plan was received, the Committee of Creditors recommended liquidation, which was approved on April 22, 2019. The appointed Liquidator attempted to sell the company as a going concern but received no Expressions of Interest (EOI). Subsequently, the Liquidator tried to sell the assets in four lots, successfully selling two. The remaining assets, 'Township' and 'Miscellaneous Assets', remained unsold after 14 multiple auctions. The reserve price for the 'Township' and 'Miscellaneous Assets' was reduced to Rs. 18.92 crores and Rs. 0.07 crores, respectively. Stakeholders then decided to explore a private sale. The Liquidator published

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## Issues and analysis

### Issue 1: Whether the Liquidator can execute the private sale of the Township and Miscellaneous Assets to …

**Ratio:** Regulation 33(2) of the Liquidation Regulations outlines the circumstances under which

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**Reasoning:** The Tribunal considered the difficulty faced by the Liquidator in selling the assets

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**Interpretation:** Regulation 33(2) provides flexibility in the liquidation process, allowing for

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**Application:** In this case, the Tribunal granted permission for the private sale, recognizing

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Respondents:** East Coast Energy…; East Coast Energy…

## Timeline

- **2018-04-03 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against East Coast Energy…
- **2019-04-22 — Liquidation…**: Committee of Creditors recommended…

## 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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