# In the matter of Kohinoor Pulp & Paper Pvt. Ltd.

> NCLT judgment dated 2023-11-10. Citation: TCN-2023-NCLT-00783. The liquidator filed an application seeking permission to conduct an auction sale of the…

- **Court:** NCLT
- **Order date:** 10 Nov 2023
- **Citation:** TCN-2023-NCLT-00783
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kohinoor-pulp-paper-pvt-ltd-4249af32

## Summary

### Background

The liquidator filed an application seeking permission to conduct an auction sale of the corporate debtor's plant and machinery with a reserve price of Rs. 3.60 Crore, which was lower than the Stakeholders Consultation Committee's recommended reserve price of Rs. 6.50 Crore.

## Facts

The liquidator of Kohinoor Pulp & Paper Private Limited filed an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking permission to conduct an auction sale of the corporate debtor's plant and machinery. The liquidator proposed a reserve price of Rs. 3.60 Crore, noting that previous attempts to sell the assets at higher reserve prices, including Rs. 11.50 Crore and later Rs. 6.50 Crore, had failed to attract bidders. The liquidator considered Rs. 3.60 Crore a reasonable midpoint value based on an offer of Rs. 1.50 Crore and the last reserve price of Rs. 6.50 Crore. The Stakeholders Consultation Committee (SCC), comprising various banks such as Indian Overseas Bank, Bank of Baroda, Union Bank, Federal Bank, UCO Bank, and

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## Issues and analysis

### Issue 1: Whether the liquidator should be permitted to conduct an auction sale of the corporate debtor's …

**Ratio:** Commercial decisions made by the Stakeholders Consultation Committee after due

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**Reasoning:** The NCLT considered the SCC's opinion as a commercial decision made after due

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**Interpretation:** The NCLT interpreted its role as not to interfere with the commercial wisdom of

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**Application:** The NCLT applied this interpretation by directing the liquidator to adhere to

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## Parties

- **Judges:** Rohit K…; Balraj…; +3 more
- **Appellants:** Krishnaswami CVR,…; Krishnaswa…; +1 more
- **Respondents:** Kohinoor Pulp &…; Sauria Corp…
- **Advocates:** For the Liquidator…; Shaunak Mitra,…; +3 more

## Timeline

- **August 14, 2023 — SCC Meet…**: Stakeholders Consultation Committee (SCC) meeting held where it was opined that the…
- **October 16, 2023 — Date of H…**: The application was…

## 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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