# In the matter of Sembmarine Kakinada Limited

> NCLT judgment dated 2024-11-07. Citation: TCN-2024-NCLT-00289. The case pertains to the liquidation of M/s. Sembmarine Kakinada Limited ('CD') under the…

- **Court:** NCLT
- **Order date:** 7 Nov 2024
- **Citation:** TCN-2024-NCLT-00289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sembmarine-kakinada-limited-8e93062f

## Summary

### Background

The case pertains to the liquidation of M/s. Sembmarine Kakinada Limited ('CD') under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a company petition filed by Axis Bank Limited. After failing to resolve the CD in CIRP due to the termination of a land lease by Kakinada Seaports Limited, the RP filed an application for liquidation, which was approved by the Tribunal. The liquidator then took steps to sell the CD's assets, including attempts to sell it as a going concern. An offer was received from M/s. Anirudh Agro Farms Limited ('AAFL') to acquire the CD as a going concern, which was approved by the Stakeholders' Consultation Committee (SCC).

## Facts

On 23.09.2019, Axis Bank Limited's company petition was admitted, initiating the Corporate Insolvency Resolution Process (CIRP) for M/s. Sembmarine Kakinada Limited ('CD'). Mr. Om Prakash Agarwal was appointed as the Interim Resolution Professional (IRP) and later confirmed as RP. Due to the termination of a land lease by Kakinada Seaports Limited, the CIRP failed, leading to the RP filing an application for liquidation, which was approved on 01.11.2021. The applicant was appointed as the Liquidator. An advertisement was published on 04.11.2021, inviting claims from stakeholders, and the Stakeholders' Consultation Committee (SCC) was formed. The SCC was reconstituted on 15.10.2022, following amendments to the Liquidation Process Regulations. 19 SCC meetings were held

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## Issues and analysis

### Issue 1: Whether the liquidation process of the …

**Ratio:** Regulation 45(3)(a) of the Insolvency Board of India (Liquidation Process) Regulations,

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**Reasoning:** The Tribunal noted that the Corporate Debtor was sold as a going concern to M/s. Anirudh

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**Interpretation:** Regulation 45(3)(a) provides the framework for closing the liquidation process

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**Application:** The Tribunal applied Regulation 45(3)(a) to the facts of the case, noting that

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Axis Ban…
- **Respondents:** Sembmarine…; Sembmarine…

## Timeline

- **2019-09-23 — Admission of Company…**: Company Petition TCP(IB)28/7/AMR/2019 by Axis Bank Limited was admitted, initiating the…
- **2019-10-22 — Confirmatio…**: Mr. Om Prakash Agarwal, initially appointed as the Interim Resolution Professional…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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