# 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-03113. 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-03113
- **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-f921277f

## 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 various directions against the liquidator, including challenging sale notices and the constitution of the Stakeholders Consultation Committee (SCC). IA No. 89 of 2022 was filed by Satya Narayan Jhunjhunwala, an ex-director of JVL Agro Industries Limited, seeking similar reliefs. The Corporate Insolvency Resolution Process (CIRP) was initiated against JVL Agro Industries Limited on 25.07.2018, and subsequently, a liquidation

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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 due to the absence of an approved resolution plan. The Employee Welfare Trust, representing 550 employees and 5000 families dependent on JVL Agro, and Satya Narayan Jhunjhunwala, an ex-director, filed applications (IA No. 98/2022 and IA No. 89/2022 respectively) challenging the liquidator's actions, particularly concerning the sale notices and the composition of the Stakeholders Consultation Committee (SCC). The core contention revolves around the liquidator's alleged failure to genuinely attempt selling JVL Agro as a 'going concern' as mandated by the NCLAT, instead opting for piecemeal asset sales. 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 ratio is based on the interpretation of the NCLAT's order directing the liquidator to

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**Reasoning:** The court reasoned that the liquidator had initially attempted to sell the Corporate

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**Interpretation:** The interpretation involves understanding the scope of the NCLAT's order and

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Employee Welfare…
- **Respondents:** JVL Agro Industrie…; Supriyo Kumar…
- **Advocates:** Mohit Cha…; Prakhar M…; +9 more

## Timeline

- **2018-07-25 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against JVL Agro Industries…
- **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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