# In the matter of JVL Agro Industries Ltd. IA No.394-2022 in CP (IB) No.223-ALD-2018

> NCLT judgment dated 2023-06-01. Citation: TCN-2023-NCLT-03104. The case involves an application (IA No.394/2022) filed by a Successful Auction Purchaser…

- **Court:** NCLT
- **Order date:** 1 Jun 2023
- **Citation:** TCN-2023-NCLT-03104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jvl-agro-industries-ltd-ia-no394-2022-in-cp-ib-no223-ald-2018-8221365a

## Summary

### Background

The case involves an application (IA No.394/2022) filed by a Successful Auction Purchaser seeking directions for the issuance of a sale certificate by the liquidator in the matter of CP (IB) No.223/ALD/2018. Two other IAs (No.98/2022 and No.89/2022) were filed challenging the sale notice, one by an Employees Welfare Trust and the other by the erstwhile director of the Corporate Debtor. The Tribunal had previously ordered the auction sale to proceed but subject to the outcome of the IA and without the liquidator issuing a sale certificate without prior approval.

## Facts

Gokul Agro Resources Limited is undergoing insolvency proceedings under CP (IB) No.223/ALD/2018. Standard Chartered Bank is the financial creditor. JVL Agro Industries Ltd. is the corporate debtor. An auction was conducted, and a Successful Auction Purchaser emerged. The Successful Auction Purchaser filed IA No.394/2022 seeking directions for the issuance of a sale certificate by the liquidator. The applicant deposited Rs.107.35 crore. Two other IAs (No.98/2022 and No.89/2022) were filed challenging the sale notice. IA No.98/2022 was filed by an Employees Welfare Trust representing the employees of the Corporate Debtor. IA No.89/2022 was filed by the erstwhile director. The Tribunal had passed an ad-interim order dated 4th April, 2022, restricting the issuance of the

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## Issues and analysis

### Issue 1: Whether the liquidator should be directed to issue a sale certificate to the Successful Auction …

**Ratio:** The dismissal of the IAs challenging the sale removes any embargo on the issuance of the

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**Reasoning:** The Tribunal reasoned that since the two IAs (No.98/2022 and No.89/2022) challenging the

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**Interpretation:** This means that once challenges to a sale are dismissed, the liquidator is free

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**Application:** Since the IAs challenging the sale were dismissed, the liquidator was directed

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Supriyo Kumar…
- **Respondents:** JVL Agro Industrie…; LIQUIDATOR OR JVL…

## Timeline

- **2022-01-24 — Sale Notic…**: Sale notice challenged by Employees…
- **2022-04-04 — Ad-interim…**: Tribunal passed an ad-interim order restricting the issuance of the sale certificate…

## 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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