# 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-02679. 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-02679
- **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-e36c46c0

## 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 Respondent (Liquidator) published an E-Auction Sale Notice dated 25.08.2021 to sell the assets of the Corporate Debtor (CD). M/s Adonis Electronics Private Limited, the Applicant, expressed interest in participating in the e-auction for an industrial plot. The Applicant deposited the earnest money but claimed they were not provided with login credentials for the auction scheduled on 01.10.2021. The Applicant questioned the fairness of the

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## Facts

M/s Monica Electronics Limited was undergoing liquidation, with Mr. Sanjay Kumar Singh appointed as the liquidator. As part of the liquidation process, an e-auction was scheduled for 01.10.2021 to sell an industrial plot owned by Monica Electronics. M/s Adonis Electronics Private Limited expressed interest in participating in the auction and deposited the required earnest money (EMD). The reserve price for the plot was Rs. 20,50,000, and the EMD was Rs. 2,00,000. Adonis Electronics claims they did not receive login credentials for the auction despite requesting them. The liquidator postponed the auction a few times, initially scheduled for 08.09.2021, then to 25.09.2021, and finally to 01.10.2021. The Liquidator alleged that Adonis Electronics was part of a cartel with

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## Issues and analysis

### Issue 1: Whether the Liquidator acted appropriately in conducting the e-auction process for the assets of …

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

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**Reasoning:** The court reasoned that if the Liquidator had reason to believe that the Applicant was

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**Interpretation:** This regulation aims to ensure a fair and transparent auction process by

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**Application:** In this case, the Liquidator alleged that the Applicant was part of a cartel

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** M/s Adonis…
- **Respondents:** M/s Monica…

## Timeline

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