# In the matter of Shree Bhawani Paper Mills Ltd. IA No.195-2023 in CP (IB) No.110-ALD-2017

> NCLT judgment dated 2023-05-26. Citation: TCN-2023-NCLT-03161. The case pertains to IA No. 195/2023 filed in CP (IB) No. 110/ALD/2017 before the National…

- **Court:** NCLT
- **Order date:** 26 May 2023
- **Citation:** TCN-2023-NCLT-03161
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-bhawani-paper-mills-ltd-ia-no195-2023-in-cp-ib-no110-ald-2017-347efb49

## Summary

### Background

The case pertains to IA No. 195/2023 filed in CP (IB) No. 110/ALD/2017 before the National Company Law Tribunal, Allahabad Bench, Prayagraj. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016. The applicants, Ramesh Chaudhary and Interweave Polytex Pvt. Ltd., were the successful auction purchasers of the Corporate Debtor, M/s Shree Bhawani Paper Mills Ltd., which was undergoing liquidation. The Corporate Debtor was initially admitted into Corporate Insolvency Resolution Process (CIRP) on 13.02.2018, following a petition under Section 10 of the IBC. Due to the absence of a resolution plan, an order for liquidation was passed on 07.07.2021 under Section 33 of the Code. The Liquidator then

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## Facts

The Corporate Debtor, M/s Shree Bhawani Paper Mills Ltd., was admitted into Corporate Insolvency Resolution Process (CIRP) on 13.02.2018 following a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC). Due to the absence of a resolution plan, an order for liquidation was passed on 07.07.2021 under Section 33 of the Code. The Liquidator initiated an e-auction process for the sale of the Corporate Debtor as a going concern. The e-auction was conducted on 'as is where is basis', 'whatever there is basis', and 'without recourse basis'. The commencement of the e-auction was on 25.10.2021, and the last date for submission of bids was 16.10.2021. The reserve price for the Corporate Debtor was Rs. 45.00 Crore, with an EMD amount of Rs. 4.50 Crore.

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## Issues and analysis

### Issue 1: Whether the reliefs sought by the applicant for the smooth implementation of sale under liquidation …

**Ratio:** Section 60(5) of the IBC and Rule 11 of the NCLT Rules, 2016, provide the legal basis for

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**Reasoning:** The Tribunal considered the pleadings and submissions made by the counsel for the

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**Interpretation:** Section 60(5) provides the NCLT with broad powers to entertain any application

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**Application:** The Tribunal, keeping in view the provisions of Section 60(5) of the Code and

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Ramesh Cha…
- **Respondents:** SHREE BHAWANI…; Anju Ag…
- **Advocates:** Anand Chh…; Kalpana…; +5 more

## Timeline

- **2018-02-13 — CIRP Init…**: Corporate Debtor was put under Corporate Insolvency Resolution Process (CIRP) by an order…
- **2021-07-07 — Liquidation…**: This Bench passed an order for liquidation of the Corporate Debtor under Section 33 of…

## 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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