# In the matter of Shriram SEPPL Composites Private Limited

> NCLT judgment dated 2023-10-12. Citation: TCN-2023-NCLT-01264. The case involves applications IA(IBC)/335/CHE/2023 and IA(IBC)/397/CHE/2023 filed by the…

- **Court:** NCLT
- **Order date:** 12 Oct 2023
- **Citation:** TCN-2023-NCLT-01264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shriram-seppl-composites-private-limited-a8d5e899

## Summary

### Background

The case involves applications IA(IBC)/335/CHE/2023 and IA(IBC)/397/CHE/2023 filed by the Liquidator of Shriram SEPL Composites Private Limited, in the context of the liquidation process initiated under the Insolvency and Bankruptcy Code, 2016. The Tribunal had previously ordered the liquidation of the Corporate Debtor on 2022-04-28. The applications seek approval for the auction sale of the Corporate Debtor as a going concern and certain reliefs and concessions for the successful auction purchaser.

## Facts

The Corporate Debtor, Shriram SEPL Composites Private Limited, was undergoing liquidation, initiated by a Tribunal order dated 2022-04-28. To sell the Corporate Debtor as a going concern, a 2nd Stakeholders Consultation Committee meeting was held on 2022-08-05. The Liquidator initiated an E-auction process, with one bidder participating and paying an EMD of Rs. 5,00,000. The successful bidder paid the balance sale consideration of Rs. 49,00,000. The successful auction purchaser sought reliefs and concessions for the proposed sale as a going concern via a letter dated 2022-09-16. The Liquidator then moved the present application before the Tribunal to grant these reliefs. The successful bidder submitted an affidavit under Section 29A of IBC, 2016, stating eligibility to

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## Issues and analysis

### Issue 1: Whether the auction sale of the Corporate …

**Ratio:** The 'clean slate' principle, as established by the NCLAT and Supreme Court, supports the

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**Reasoning:** The Tribunal considered the submissions of the Liquidator, the participation of a single

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**Interpretation:** The 'clean slate' principle aims to facilitate the sale of companies as going

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**Application:** The Tribunal applied the 'clean slate' principle to the facts of the case,

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Shriram SEPL…

## Timeline

- **2022-04-28 — Liquidation…**: Tribunal orders for…
- **2022-08-05 — Stakeholders Consultatio…**: 2nd Stakeholders Consultation Committee meeting held, deciding to sell the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 32(e) — Appeal](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-32)

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