# In the matter of Gadhinglaj Agro Alchochem Limited

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02095. Melkar TTI Biofuels Limited filed an application (I.A. 1040 of 2023) under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gadhinglaj-agro-alchochem-limited-617c27bb

## Summary

### Background

Melkar TTI Biofuels Limited filed an application (I.A. 1040 of 2023) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, in the liquidation proceedings of Gadhinglaj Agro Alchochem Limited (Corporate Debtor). The applicant, being the successful auction purchaser of the distillery business of the Corporate Debtor, sought reliefs against demands for prior dues by various authorities (Respondents 2, 3, and 4) and the refusal to transfer licenses and permissions unless these dues were cleared. The applicant had paid Rs. 43,75,091/- under protest to Respondent No. 2 and sought a refund. The liquidator (Respondent No. 1) supported the applicant's contention that the applicant is not liable for prior dues.

## Facts

Gadhinglaj Agro Alchochem Limited underwent liquidation, and Mr. Gulshan Kumar Gupta was appointed as the liquidator. Melkar TTI Biofuels Limited became the successful bidder in an e-auction conducted by the liquidator on 23.07.2021, acquiring the distillery business of the Corporate Debtor for Rs. 17,10,00,000/-. A sale certificate and possession letter were issued on 27.10.2021. Subsequently, Melkar TTI Biofuels Limited applied to various authorities, including the Maharashtra Excise Department, Maharashtra State Electricity Distribution Company Limited, and Maharashtra Sales Tax Department, for the transfer of licenses and permissions. These authorities (Respondents 2, 3, and 4) refused to transfer the licenses and permissions unless the overdue dues of Gadhinglaj

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## Issues and analysis

### Issue 1: Whether the auction purchaser (Melkar TTI Biofuels Limited) is liable for the dues of the Corporate …

**Ratio:** The 'Clean Slate Principle' dictates that an auction purchaser cannot be fastened with

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**Reasoning:** The Tribunal relied on the 'Clean Slate Principle' and cited the cases of Paschimanchal

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**Interpretation:** The 'Clean Slate Principle' ensures that the auction purchaser starts with a

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**Application:** Applying the 'Clean Slate Principle' to the facts, the Tribunal held that

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Melkar TTI…
- **Respondents:** Gadhinglaj Agro…; Gulshan Kumar…

## Timeline

- **2021-01-27 — Order for Commencement…**: The Tribunal passed an order for the commencement of liquidation of Gadhinglaj Agro…
- **2021-02-25 — Last Date for…**: The last date for submission of…

## 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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