# In the matter of Monica Electronics Limited IA. No. 4801-ND-2021 in Company Petition No. (IB)-2257-(ND)-2019

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02686. The case involves an application (IA No. 4801/ND/2021) filed in a company petition…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/monica-electronics-limited-ia-no-4801-nd-2021-in-company-petition-no-ib-2257-nd-d277d3e1

## Summary

### Background

The case involves an application (IA No. 4801/ND/2021) filed in a company petition (IB-2257/(ND)/2019) concerning the liquidation of M/s Monica Electronics Limited. The Adjudicating Authority had ordered the liquidation of Monica Electronics and appointed Mr. Sanjay Kumar Singh as the Liquidator. During the liquidation process, the Liquidator published an E-Auction Sale Notice dated 25.08.2021 to sell an industrial plot. M/s Adonis Electronics Private Limited, the applicant, expressed interest and deposited the earnest money. However, they were not provided with login credentials for the e-auction scheduled for 01.10.2021 and were later informed that their documents were not in conformity with the e-auction terms, rendering them ineligible.

## Facts

M/s Monica Electronics Limited was undergoing liquidation, with Mr. Sanjay Kumar Singh as the Liquidator. An e-auction was announced for an industrial plot, with a reserve price of Rs. 20,50,000 and an EMD of Rs. 2,00,000. M/s Adonis Electronics Private Limited deposited the EMD and expressed interest. The e-auction was postponed multiple times, and Adonis Electronics was not provided login credentials for the final auction date of 01.10.2021. They were informed on 02.10.2021 that their documents were non-compliant. The Liquidator alleged that Adonis Electronics was part of a cartel with other bidders (Ashpura Traders, Salawat Infracon, Hiren Palan, and W9 Realty LLP), citing similarities in bid applications and attestation. Adonis Electronics claims they were not

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## Issues and analysis

### Issue 1: Whether the Liquidator violated Regulation 33(3) of …

**Ratio:** Regulation 33(3) of the IBBI (Liquidation Process) Regulations 2016 mandates that the

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**Reasoning:** The court reasoned that the Liquidator, upon finding a potential cartel, should have

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**Interpretation:** The interpretation of Regulation 33(3) is that it imposes a mandatory

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**Application:** In this case, the Liquidator allegedly found four bidders in collusion but

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** M/s Adonis…
- **Respondents:** M/s Monica…
- **Advocates:** Atul Sh…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No.…
- **2021-03-15 — Liquidation…**: Adjudicating Authority ordered the Liquidation…

## 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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