# In the matter of Leel Electricals Limited

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-01991. The application IA No.366/2023 in CP (IB) No.189/ALD/2019 was filed under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-01991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/leel-electricals-limited-74d8200c

## Summary

### Background

The application IA No.366/2023 in CP (IB) No.189/ALD/2019 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 32A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The applicant, Mr. Ganga Ram Agarwal, Liquidator of LEEL Electricals Limited, sought directions for implementing the sale of the Corporate Debtor, Leel Electricals Ltd., as a going concern to Krishna Ventures Ltd., the Successful Auction Purchaser. The CIRP was initiated on 2020-03-04. As no resolution plan was approved, liquidation was initiated on 2021-12-06. The liquidator constituted a Stakeholders Consultation Committee (SCC) on 2022-02-04. The SCC decided on 2022-02-14 to fix the reserve price for the sale of assets as a

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of LEEL Electricals Limited was initiated on 2020-03-04. The Interim Resolution Applicant (IRP) was later replaced by the present Applicant, Mr. Ganga Ram Agarwal, who became the Liquidator. As no Resolution Plan was approved, the liquidation process was initiated on 2021-12-06. The Liquidator published Form-B on 2021-12-07, inviting claims and constituted a Stakeholders Consultation Committee (SCC) on 2022-02-04. The SCC decided on 2022-02-14 to fix the reserve price for the sale of assets as a going concern at Rs. 100 crores. A sale notice was published, presenting an option for sale as a going concern and individual plant sales. Six plants were sold. The remaining assets included the company's name, icon,

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## Issues and analysis

### Issue 1: Whether the sale of the Corporate Debtor as a going concern to the Successful Auction Purchaser …

**Ratio:** Regulation 32A of the Liquidation Process Regulations encourages the sale of the

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**Reasoning:** The court considered that while the entire assets were not sold as a whole, the remaining

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**Interpretation:** The 'going concern' sale in liquidation involves transferring assets while

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**Application:** The court approved the sale of LEEL Electricals Limited as a going concern to

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Ganga Ram A…
- **Respondents:** LEEL Electricals…; Krishna Ventures…

## Timeline

- **2020-03-04 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2021-12-06 — Liquidation In…**: Liquidation process 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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