# In the matter of Sanghavi Exports International Private Limited

> NCLT judgment dated 2024-04-29. Citation: TCN-2024-NCLT-01547. 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-01547
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanghavi-exports-international-private-limited-9e5004d9

## 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 on 2019-11-13, and a liquidation order was passed on 2020-12-15. The applicant, Star Blue Jewels, participated in an e-auction for the sale of Lot-1 (asset) of the Corporate Debtor, was declared the successful bidder, and deposited an Earnest Money Deposit (EMD) of Rs. 45,00,000. The applicant requested an extension of time to pay the balance consideration, which was refused by the Liquidator. The Liquidator then

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## Facts

On 2019-02-19, Corporate Insolvency Resolution Process (CIRP) was initiated against Sanghavi Exports International Private Limited. After the 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. Mr. Shailesh Bhalchandra Desai was appointed as the Liquidator. The Liquidator issued an auction notice on 2022-04-25 for the sale of Lot-1 (asset) of the Corporate Debtor. Star Blue Jewels Pvt. Ltd. participated in the e-auction and was declared the successful bidder at the reserve price of Rs. 4,50,00,000. The Liquidator shared the E-Auction Process Information Document with the Applicant on 2022-07-29. The applicant deposited an Earnest Money Deposit

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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 IBBI (Liquidation Process) Regulations, 2016, mandates

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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 Tribunal interpreted that the 90-day period for payment of balance sale

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**Application:** The Tribunal applied the ratio to the facts of the case, noting that 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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