# In the matter of Kandla Energy And Chemicals Limited

> NCLT judgment dated 2025-02-04. Citation: TCN-2025-NCLT-00532. The case involves an Interlocutory Application filed under Regulation 44(1), 45(3)(A) of the…

- **Court:** NCLT
- **Order date:** 4 Feb 2025
- **Citation:** TCN-2025-NCLT-00532
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kandla-energy-and-chemicals-limited-344ce7ff

## Summary

### Background

The case involves an Interlocutory Application filed under Regulation 44(1), 45(3)(A) of the IBBI (Liquidation Process) Regulations 2016 read with Section 60(5) of the IB Code, 2016 and Rule 11 of the National Company Law Tribunal Rules, 2016, seeking closure of the liquidation process of the Corporate Debtor, Kandla Energy and Chemicals Limited. The Financial Creditor, State Bank of India, had previously filed an application under section 7 of the Code for initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted on 21.10.2022. Mr. Nimai Gautam Shah was appointed as Interim Resolution Applicant (IRP). Subsequently, Mr. Nimai Gautam Shah filed IA no. 614 of 2023 under section 33 of the Insolvency and Bankruptcy

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## Facts

The State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Kandla Energy and Chemicals Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP was admitted on 21.10.2022, and Mr. Nimai Gautam Shah was appointed as the Interim Resolution Professional (IRP). Subsequently, due to certain reasons, the company was ordered into liquidation on 29.01.2024, and Mr. Bimal Ashok Desai was appointed as the liquidator. The liquidator made a public announcement on 03.02.2024, inviting claims from creditors and constituted a Stakeholders Consultation Committee (SCC). The liquidator then sold the Corporate Debtor (CD), Kandla Energy and Chemicals Limited, as a going concern through an e-auction. M/s Parshwa Enterprise was declared

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## Issues and analysis

### Issue 1: Whether the application for closure of the liquidation process of the Corporate Debtor, Kandla …

**Ratio:** Section 35 and 53 of the Insolvency and Bankruptcy Code, 2016, read with the IBBI

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**Reasoning:** The NCLT observed that the liquidator had sold the corporate debtor as a going concern,

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**Interpretation:** The legal issue revolves around whether the liquidator has fulfilled all the

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**Application:** Given that the liquidator had sold the corporate debtor as a going concern,

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Mr.Bimal Ashok…
- **Respondents:** Kandla Energy and…

## Timeline

- **2022-10-21 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP)…
- **2024-01-29 — Liquidation…**: An order of Liquidation of the…

## 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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