# In the matter of Sanghavi Exports International Private Limited

> NCLT judgment dated 2024-04-29. Citation: TCN-2024-NCLT-01537. The case involves an application (I.A. 2556/2023) filed by Star Blue Jewels Pvt. Ltd. in a…

- **Court:** NCLT
- **Order date:** 29 Apr 2024
- **Citation:** TCN-2024-NCLT-01537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanghavi-exports-international-private-limited-6b301db4

## Summary

### Background

The case involves an application (I.A. 2556/2023) filed by Star Blue Jewels Pvt. Ltd. in a Corporate Insolvency Resolution Process (CIRP) initiated against Sanghavi Exports International Private Limited. The CIRP was initiated on 2019-02-19. After the failure of the resolution process, the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor, and a liquidation order was passed on 2020-12-15. The Liquidator initiated an e-auction process for the sale of assets, and Star Blue Jewels Pvt. Ltd. participated as the sole bidder and was declared the successful bidder. The applicant sought to withdraw its bid and obtain a refund of the Earnest Money Deposit (EMD) due to insufficient time for due diligence and a dispute regarding the assets.

## Facts

On 2019-02-19, Corporate Insolvency Resolution Process (CIRP) was initiated against Sanghavi Exports International Private Limited. Upon failure of the resolution process, the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor on 2019-11-13, and a liquidation order was passed on 2020-12-15. The Liquidator issued an auction notice on 2022-04-25 inviting participation in the e-auction process for the sale of Lot-1 (asset) of the Corporate Debtor. A subsequent auction notice dated 2022-07-20 increased the land area for sale and reduced the Reserve Price to Rs. 4,50,00,000/-. The Liquidator shared the E-Auction Process Information Document with Star Blue Jewels Pvt. Ltd. on 2022-07-29, with the e-auction scheduled for 2022-08-01. Star Blue Jewels Pvt.

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## Issues and analysis

### Issue 1: Whether the Liquidator was justified in cancelling the bid of the Applicant, ignoring the timeline …

**Ratio:** Clause 12 of Schedule I of the Insolvency and Bankruptcy Board of India (Liquidation

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**Reasoning:** The Tribunal reasoned that the Liquidator cancelled the bid on 2022-09-28, before the

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**Interpretation:** The interpretation of Clause 12 of Schedule I of the Liquidation Regulations is

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**Application:** In this case, the Liquidator's cancellation of the bid before the expiry of the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Star Blue Jewels…
- **Respondents:** Sanghavi Exports…; Shailesh Bhalchand…

## Timeline

- **2019-02-19 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Sanghavi Exports…
- **2019-11-13 — CoC Resolution for…**: Committee of Creditors (CoC) resolved…

## 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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