# In the matter of Shirpur Power Pvt. Ltd. IA-561 & 597 (AHM)2022 in CP(IB) 487 of 2018

> NCLT judgment dated 2022-08-02. Citation: TCN-2022-NCLT-01495. The case involves two applications, IA/561(AHM)2022 filed by Jindal Power Ltd, the successful…

- **Court:** NCLT
- **Order date:** 2 Aug 2022
- **Citation:** TCN-2022-NCLT-01495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shirpur-power-pvt-ltd-ia-561-597-ahm2022-in-cpib-487-of-2018-1cd4e3c7

## Summary

### Background

The case involves two applications, IA/561(AHM)2022 filed by Jindal Power Ltd, the successful bidder, and IA/594(AHM)2022 filed by the stakeholders' committee of the corporate debtor, Shirpur Power Pvt Ltd, in relation to the Corporate Insolvency Resolution Process (CIRP) of Shirpur Power Pvt Ltd. The CIRP was initiated on 04.03.2020, but no resolution plan was approved. Consequently, liquidation was ordered on 03.02.2021, and the liquidation process commenced on 15.03.2021. The liquidator attempted to sell the corporate debtor as a going concern but received no bids. Subsequently, the liquidator initiated a slump sale, which Jindal Power Ltd accepted. Jindal Power Ltd then sought to convert the slump sale into a sale as a going concern, which the stakeholders'

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## Facts

On 04.03.2020, Shirpur Power Pvt Ltd was admitted into the Corporate Insolvency Resolution Process (CIRP). During the CIRP, the Resolution Professional (RP) and the Committee of Creditors (CoC) did not receive any resolution plan worth accepting. On 03.02.2021, the CoC passed a resolution recommending the liquidation of the corporate debtor. The liquidation process started on 15.03.2021. The liquidator published the first notice for the sale of the corporate debtor as a going concern on 05.04.2021, fixing the reserve price at Rs. 5,66,23,00,000/-. The liquidator received no response and reduced the reserve price by 15%, republishing the notice. This lack of response continued over three occasions (20.04.2021, 15.06.2021, and 29.06.2021), with the liquidator reducing

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## Issues and analysis

### Issue 1: Whether having accepted the corporate debtor in a slump sale, the bidder can request to treat that …

**Ratio:** The principle is that once a party has accepted the terms of a sale (in this case, a

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**Reasoning:** The court reasoned that the applicant, Jindal Power Ltd, accepted the bid for the slump

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code,

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**Application:** In this specific case, the court applied the principle that the applicant,

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Jindal Pow…
- **Respondents:** Shirpur Power Pvt…; Dushyant C Dave…

## Timeline

- **2020-03-04 — CIRP Init…**: Corporate debtor admitted into Corporate…
- **2021-02-03 — Liquidation…**: CoC passed a resolution recommending the order…

## 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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