# In the matter of Kohinoor Pulp & Paper Private Limited I.A (IB) No. 892-KB-2022 In C.P. (IB) No. 511-KB-2018

> NCLT judgment dated 2022-08-31. Citation: TCN-2022-NCLT-01206. This case involves an Interlocutory Application (IA) filed by Universaltech Paper LLP, seeking…

- **Court:** NCLT
- **Order date:** 31 Aug 2022
- **Citation:** TCN-2022-NCLT-01206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kohinoor-pulp-paper-private-limited-ia-ib-no-892-kb-2022-in-cp-ib-no-511-kb-2018-a9c071e4

## Summary

### Background

This case involves an Interlocutory Application (IA) filed by Universaltech Paper LLP, seeking direction to the Liquidator to conduct an auction sale of Kohinoor Pulp & Paper Private Limited (Corporate Debtor) as a going concern using the Swiss Challenge Method. The applicant also sought an interim order to stay the auction as per the publication notice dated August 22, 2022. The Liquidator had initially issued a notice on August 2, 2022, for the sale of the Corporate Debtor as a going concern using the Swiss Challenge Method but later issued a fresh notice on August 22, 2022, to conduct the sale through a normal e-auction process. The applicant challenged this change in the auction method.

## Facts

Sauria Corporation is the Operational Creditor. Kohinoor Pulp & Paper Private Limited is the Corporate Debtor undergoing liquidation. Universaltech Paper LLP filed an Interlocutory Application (IA No. 892/KB/2022) seeking direction to the Liquidator to conduct an auction sale of the Corporate Debtor as a going concern using the Swiss Challenge Method. The Liquidator initially issued a notice on August 2, 2022, for the sale using the Swiss Challenge Method but later issued a fresh notice on August 22, 2022, to conduct the sale through a normal e-auction process. The applicant challenged this change, arguing it was arbitrary. The Stakeholders' Consultation Committee suggested increasing the reserve price and conducting a normal auction. The reserve price was

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## Issues and analysis

### Issue 1: Whether the Liquidator acted arbitrarily in changing the auction method from Swiss Challenge Method …

**Ratio:** The Liquidator has the authority to decide the mode of sale in the best interest of

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**Reasoning:** The court reasoned that the Liquidator is empowered to take a call on the mode of sale

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**Interpretation:** This issue concerns the extent of the Liquidator's discretion in determining

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**Application:** The court applied this ratio to the facts by finding that the Liquidator's

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Universaltech…
- **Respondents:** Kohinoor Pulp &…; Krishnaswami CVR,…

## Timeline

- **2022-08-02 — Liquidator Issu…**: The Liquidator issued a notice conducting Sale of the Corporate Debtor as a going concern…
- **2022-08-08 — Stakeholders'…**: Stakeholders' Consultation…

## 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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