# In the matter of Powai Cubicles Pvt. Ltd.

> NCLT judgment dated 2024-01-24. Citation: TCN-2024-NCLT-02938. The case pertains to an application filed by M/s Metro Transit Private Limited, the successful…

- **Court:** NCLT
- **Order date:** 24 Jan 2024
- **Citation:** TCN-2024-NCLT-02938
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/powai-cubicles-pvt-ltd-a1c478d4

## Summary

### Background

The case pertains to an application filed by M/s Metro Transit Private Limited, the successful bidder for Powai Cubicles Private Limited (the Corporate Debtor), under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016. The Corporate Debtor was undergoing liquidation following a CIRP initiated on 2021-02-26 and a subsequent liquidation order on 2022-03-30. The applicant sought various reliefs and concessions to facilitate the smooth running of the Corporate Debtor as a going concern after its acquisition through an e-auction process.

## Facts

The Corporate Debtor, Powai Cubicles Private Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated on 2021-02-26, followed by a liquidation order on 2022-03-30. M/s Metro Transit Private Limited participated in the e-auction for the purchase of the Corporate Debtor as a going concern and was declared the successful bidder on 2023-03-30. The applicant paid the entire sale consideration of Rs. 6,22,11,000/-. A Sale Certificate was issued on 2023-04-28. The applicant sought various reliefs and concessions to ensure the smooth running of the Corporate Debtor as a going concern, including vesting of assets, extinguishment of past liabilities, and reconstitution of the board of directors. A notice dated 2023-09-28 was received by the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the applicant, as the successful bidder, is entitled to the reliefs and concessions sought …

**Ratio:** The principle is that a purchaser of a Corporate Debtor as a going concern should not be

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**Reasoning:** The Tribunal relied on the observations of the Hon'ble NCLAT in M/s Shiv Shakti Inter

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**Interpretation:** This legal issue involves the interpretation of Section 53 of the IBC and the

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**Application:** The Tribunal applied this principle to the specific reliefs sought by the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** M/s Metro Transit…
- **Respondents:** Powai Cubicles…; M/s. Powai…
- **Advocates:** Harsh Kes…

## Timeline

- **2021-02-26 — CIRP Init…**: CIRP initiated against Powai Cubicles Private…
- **2022-03-30 — Liquidation…**: Liquidation order passed by the Adjudicating…

## 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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