# In the matter of JVL Agro Industries Ltd. IA NO.89 & 98-2022 in CP (IB) NO.223-ALD-2018

> NCLT judgment dated 2023-06-01. Citation: TCN-2023-NCLT-03103. The case involves two applications, IA No. 89 of 2022 and IA No. 98 of 2022, in CP (IB) No.…

- **Court:** NCLT
- **Order date:** 1 Jun 2023
- **Citation:** TCN-2023-NCLT-03103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jvl-agro-industries-ltd-ia-no89-98-2022-in-cp-ib-no223-ald-2018-7a0d8548

## Summary

### Background

The case involves two applications, IA No. 89 of 2022 and IA No. 98 of 2022, in CP (IB) No. 223/ALD/2018, which are being disposed of by a common order as they involve similar issues. IA No. 98 of 2022 was filed by the Employee Welfare Trust, representing employees of JVL Agro Industries Limited (the corporate debtor under liquidation), seeking to challenge sale notices issued by the liquidator. The Employee Welfare Trust claims that the liquidator's actions are not in accordance with the Insolvency and Bankruptcy Code (IBC) and related regulations, particularly regarding the sale of the corporate debtor as a going concern and the constitution of the Stakeholders Consultation Committee (SCC). IA No. 89 of 2022 was filed by Satya Narayan Jhunjhunwala, an ex-director of

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## Facts

JVL Agro Industries Limited underwent Corporate Insolvency Resolution Process (CIRP) starting 2018-07-25, which later transitioned to liquidation on 2020-08-19 after no resolution plan was approved. The Employee Welfare Trust, representing 550 employees and 5000 families dependent on JVL Agro, filed IA No.98/2022 challenging the liquidator's sale notices, alleging non-compliance with regulations and improper valuation. The liquidator attempted to sell the company as a going concern but received no interest, leading to a decision to sell assets piecemeal. The liquidator issued multiple sale notices and corrigendums, including a sale notice dated 2022-01-24, which the applicants claim lacked necessary details and transparency. The applicants also contested the

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## Issues and analysis

### Issue 1: Whether the Liquidator has taken bonafide steps to ensure that the liquidation process is carried …

**Ratio:** The liquidator is obligated to attempt to sell the corporate debtor as a going concern

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**Reasoning:** The court found that the liquidator had made sufficient efforts to sell the corporate

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**Interpretation:** The NCLAT's direction to sell as a going concern is not an absolute mandate but

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**Application:** In this case, the liquidator's actions, including issuing sale notices and

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Employee Welfare…
- **Respondents:** JVL Agro Industrie…; Supriyo Kumar…

## Timeline

- **2018-07-25 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2020-08-19 — Liquidation…**: Tribunal issued a liquidation order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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