# In the matter of Rainbow Denim Limited

> NCLT judgment dated 2023-07-26. Citation: TCN-2023-NCLT-02325. The case involves IA No. 779/2023 filed by Symcom Exim Private Limited, seeking directions to…

- **Court:** NCLT
- **Order date:** 26 Jul 2023
- **Citation:** TCN-2023-NCLT-02325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rainbow-denim-limited-613409b5

## Summary

### Background

The case involves IA No. 779/2023 filed by Symcom Exim Private Limited, seeking directions to the Liquidator of Rainbow Denim Limited to consider its bid for acquiring the corporate debtor as a going concern. IA No. 953/2023 was filed by a consortium including M/s R D Bansal, the successful bidder, seeking certain clarifications and exclusions regarding the payment timeline due to an interim stay. The CIRP of Rainbow Denim Limited was initiated on 09.12.2019, and liquidation commenced on 12.04.2022. The liquidator published a sale notice dated 20.01.2023 for an auction to be conducted on 20.02.2023 using a Swiss Challenge Mechanism. Symcom Exim participated in the auction, bidding for Block C assets, but its bid was rejected. Subsequently, it submitted a higher offer

…

## Facts

Rainbow Denim Limited underwent CIRP initiated on 09.12.2019, followed by liquidation commencing on 12.04.2022. The liquidator, Dharmendra Kumar Bhasin, issued a sale notice dated 20.01.2023 for an auction on 20.02.2023, employing a Swiss Challenge Mechanism. The auction included options for the sale of the Corporate Debtor as a going concern (Option A), Slump Sale of Assets (Option B), and sets of assets collectively (Options C and D). Symcom Exim Private Limited, through Vipin Chandra Kaushal, participated in the auction, submitting an Earnest Money Deposit (EMD) of Rs. 1 Crore for Block C assets. However, their bid was rejected on 21.02.2023 because no bids were received for Option D, making the cumulative bids for Options C and D less than the bid for Option A.

…

## Issues and analysis

### Issue 1: Whether the liquidator was justified in rejecting the bid submitted by Symcom Exim Private Limited …

**Ratio:** The principle of adhering to the timelines and terms of the auction process as per the

…

**Reasoning:** The court reasoned that Symcom Exim consciously chose to participate in the auction for

…

**Interpretation:** The court interpreted the relevant provisions of the IBC and related

…

**Application:** The court applied the ratio to the facts of the case, holding that the

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Amsons…
- **Respondents:** Rainbow Denim…

## Timeline

- **2019-12-09 — CIRP Init…**: The Tribunal initiated the…
- **2022-04-12 — Liquidation Com…**: The Tribunal initiated 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rainbow-denim-limited-613409b5