# In the matter of Ess Dee Aluminium Limited I.A.(IB) 909-KB-2022 In  C.P (IB) No.1284-KB-2019

> NCLT judgment dated 2022-09-02. Citation: TCN-2022-NCLT-01184. The case involves an application filed under section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Sept 2022
- **Citation:** TCN-2022-NCLT-01184
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ess-dee-aluminium-limited-iaib-909-kb-2022-in-cp-ib-no1284-kb-2019-aeac3c9d

## Summary

### Background

The case involves an application filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, concerning Ess Dee Aluminium Limited (in liquidation). The applicant sought direction from the Respondent/Liquidator to participate in an e-auction of Ess Dee Aluminum Limited. The auction was scheduled for August 26, 2022. However, the auction had already taken place, and the bid of Rs. 103.4 Crores was accepted by the Liquidator.

## Facts

Ess Dee Aluminium Limited is undergoing liquidation. An e-auction was scheduled, and the applicant initially intended to bid for Block-H. The last date for EMD submission was August 24, 2022, until 5:00 PM, and the e-auction was fixed for August 26, 2022, from 3:00 PM to 5:00 PM. The applicant submitted an additional Rs. One Crore in the liquidation account of the Corporate Debtor on August 24, 2022, at 8:30 PM and requested to switch from Block-H to Block A around 10:00 PM on the same day. The applicant stated he would provide the duly executed document by August 25, 2022, for bidding for Block-A. The auction was held on August 26, 2022, and Block-A was already sold to the highest bidder. There were 51 bidders who submitted their bids before 5:00 PM according to the

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## Issues and analysis

### Issue 1: Whether the applicant should be allowed to participate in the e-auction of Ess Dee Aluminium …

**Ratio:** The principle is that bidding processes must adhere to fixed timelines to ensure fairness

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**Reasoning:** The court reasoned that the auction had already been held, and Block-A had been sold to

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**Interpretation:** This interprets the importance of adhering to the timelines and rules

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**Application:** The applicant's request to participate after the auction was rejected because

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** Chinar Steel…
- **Respondents:** Ess Dee Aluminium…; Deepika Bhugra…

## Timeline

- **2022-08-03 — Bids Inv…**: Notice inviting bids…
- **2022-08-24 — Last Date of EMD…**: Last date for EMD submission was…

## 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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