# In the matter of Hydrolina Biotech Private Limited IA(IBC)-1275(CHE)-2022 in IBA-1269-2019

> NCLT judgment dated 2023-03-17. Citation: TCN-2023-NCLT-04162. The case involves an application filed by the liquidator of Hydrolina Biotech Private Limited,…

- **Court:** NCLT
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-NCLT-04162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hydrolina-biotech-private-limited-iaibc-1275che-2022-in-iba-1269-2019-13699f08

## Summary

### Background

The case involves an application filed by the liquidator of Hydrolina Biotech Private Limited, seeking approval from the Adjudicating Authority to sell the company under liquidation to a prospective investor on a 'going concern' basis. The Corporate Debtor (CD) was initially admitted into CIRP under Section 10 of IBBI, 2016, vide order dated 20.01.2020. Subsequently, due to the absence of a resolution applicant, the CoC resolved to liquidate the CD, and an application for liquidation was filed and ordered on 11.02.2022. The Stakeholders Consultation Committee (SCC) was formed, and it was decided to explore the possibility of sale as a 'going concern'. A composite scheme of arrangement was submitted by Jeffepex Paper Industries Pvt Ltd, proposing to infuse funds into

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## Facts

Hydrolina Biotech Private Limited was admitted into CIRP under Section 10 of IBBI, 2016, on 20.01.2020. The applicant was appointed as the IRP. The Committee of Creditors (CoC) was formed with two Financial Creditors: Biotechnology Industry Research Assistance Council (BIRAC) and Technology Development Board (TDB). During the 3rd CoC meeting on 09.09.2020, the members approved publication of Form G (EoI), which was published on 12.09.2020. A Resolution Applicant showed interest, but could not proceed due to the pandemic. A second EoI was issued on 07.12.2021, but no Resolution Plan was received by 22.01.2021. The CoC resolved to liquidate the CD on 12.02.2021, and an application for liquidation was ordered on 11.02.2022. The Stakeholders Consultation Committee (SCC)

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can approve the Scheme proposed by the prospective investor and …

**Ratio:** Regulation 32(c) of the IBBI (Liquidation Process) Regulations, 2016, governs the sale of

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**Reasoning:** The court reasoned that the provisions are clear that if the Corporate Debtor is to be

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**Interpretation:** Regulation 32(c) and 32(e) of the IBBI (Liquidation Process) Regulations, 2016,

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**Application:** In this case, the applicant sought to sell the Corporate Debtor as a 'going

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## Parties

- **Judges:** Sh. Ashok Kumar…; SAMEER…
- **Appellants:** Ramela Ran…
- **Respondents:** Hydrolina Biotech…

## Timeline

- **2020-01-20 — CIRP Init…**: Hydrolina Biotech Private Limited was admitted…
- **2020-09-09 — CoC Meet…**: 3rd CoC meeting held, members…

## 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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