# In the matter of Haridwar Iron & Ispat Rolling Limited IA-3797 (PB) of 2021 CP (IB)-532 (PB) of 2017

> NCLT judgment dated 2022-01-28. Citation: TCN-2022-NCLT-04352. Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Haridwar…

- **Court:** NCLT
- **Order date:** 28 Jan 2022
- **Citation:** TCN-2022-NCLT-04352
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/haridwar-iron-ispat-rolling-limited-ia-3797-pb-of-2021-cp-ib-532-pb-of-2017-74cb3234

## Summary

### Background

Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Haridwar Iron & Ispat Rollings Limited due to debt and default. Sanjay Gupta was initially appointed as Interim Resolution Professional (IRP), later replaced by Kashi Vishwanathan Sivaraman. Sivaraman, as the new Resolution Professional, invited Expression of Interest (Eol) for the Corporate Debtor. Alfa Ingot Private Limited was declared the highest bidder. The sole member of the CoC, Punjab National Bank, rejected the resolution plan and approved liquidation. Kashi Vishwanathan Sivaraman was appointed as Liquidator. The Liquidator conducted multiple E-Auctions, which were unsuccessful due to COVID-19. Mr. Chhota, proprietor of Laxman Enterprises, was declared the highest bidder

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## Facts

Punjab National Bank initiated CIRP against Haridwar Iron & Ispat Rollings Limited. The CIRP commenced on 2018-05-22. Sanjay Gupta was initially appointed as IRP, later replaced by Kashi Vishwanathan Sivaraman. An E-Auction was conducted by the Liquidator, Kashi Vishwanathan Sivaraman, where Mr. Chhota of M/s. Laxman Enterprises was declared the highest bidder for plant and machinery on 2020-10-22. The sale was on an 'As is where is basis'. The applicant sought an extension of time to pay, which was granted. The sale certificate was issued on 2021-02-02. The applicant claimed that some parts of the machinery were missing when he went to take possession on 2021-02-12. The Liquidator denied the claim, citing the 'As is where is basis' of the sale. The Liquidator had

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## Issues and analysis

### Issue 1: Whether the applicant is entitled to any relief for the alleged missing parts of the plant and …

**Ratio:** The principle of 'caveat emptor' (buyer beware) applies in auctions where goods are sold

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**Reasoning:** The Tribunal reasoned that the applicant was aware of the terms and conditions of the

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**Interpretation:** The 'As is where is basis' clause in the E-Auction implies that the buyer

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**Application:** The Tribunal applied the principle of 'caveat emptor' to the facts of the case,

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## Parties

- **Judges:** Ramalingam…; HEMANT KUMAR…
- **Appellants:** Chho…
- **Respondents:** Haridwar Iron &…; Kashi Vishwanathan…

## Timeline

- **2018-05-22 — Initiation…**: Tribunal initiated Corporate Insolvency Resolution Process (CIRP) against Haridwar Iron &…
- **2018-06-20 — Appointment of…**: Committee of Creditors (CoC) confirmed the appointment of the IRP as the Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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