# In the matter of Ivrcl Limited

> NCLT judgment dated 2025-02-05. Citation: TCN-2025-NCLT-00526. M/s Raghava Square Private Limited, the successful bidder for IVRCL Limited (Corporate Debtor)…

- **Court:** NCLT
- **Order date:** 5 Feb 2025
- **Citation:** TCN-2025-NCLT-00526
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ivrcl-limited-acc04a68

## Summary

### Background

M/s Raghava Square Private Limited, the successful bidder for IVRCL Limited (Corporate Debtor) under liquidation, filed an application seeking a declaration that the cancellation of the sale of the Corporate Debtor in their favor and the forfeiture of the amount paid as per the cancellation letter dated 28.07.2023 is illegal, unjust, arbitrary, and unlawful. The applicant contends that the financial creditors of the CD have been unilaterally disposing of third-party assets that form part of the 'Business Plan' submitted for acquiring the CD as a going concern. The applicant also claims that the issue of alienation of these assets was still pending adjudication in IA No. 357 of 2023 when the liquidator issued the cancellation letter. The applicant further argues that

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## Facts

M/s Raghava Square Private Limited was the successful bidder for IVRCL Limited (Corporate Debtor) in liquidation. The sale was approved by the NCLT on 15.06.2022 for Rs 1200 Crores, with a payment schedule for Rs 1150 Crores. Rs 50 Crores was already paid as EMD. The payment schedule required six tranches to be paid between 14.08.2022 and 14.06.2023. The applicant failed to adhere to the schedule. Only Rs 100 Crores was paid on 22.09.2022, more than a month after the first tranche was due. The Liquidator issued a notice on 29.03.2023 requiring the applicant to make outstanding payments by 13.04.2023, failing which the sale would be cancelled. The applicant failed to make further payments. The Liquidator cancelled the sale on 28.07.2023. The applicant filed IA No.1314

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## Issues and analysis

### Issue 1: Whether the cancellation of the sale of the Corporate Debtor to the Applicant and the forfeiture of …

**Ratio:** The Liquidator has the authority to cancel the sale of the Corporate Debtor if the

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**Reasoning:** The Applicant repeatedly failed to comply with the payment schedule prescribed by the

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**Interpretation:** The Liquidator's action to cancel the sale of the CD to the Applicant is

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**Application:** Given the Applicant's repeated failure to comply with the payment schedule, the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/S RAGHAVA…
- **Respondents:** IVRCL Li…; M/s. IVRCL…

## Timeline

- **2022-06-15 — NCLT Ord…**: NCLT approved the sale of the Corporate Debtor to the Applicant for Rs 1200 Crores, with…
- **2022-09-22 — Partial P…**: The Applicant paid Rs 100 Crores, more than a…

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