# In the matter of Spark Green Energy Satara Limited

> NCLT judgment dated 2024-11-26. Citation: TCN-2024-NCLT-00169. The case involves two interim applications (IA No. 1626/2024 and IA No. 3067/2024) arising from…

- **Court:** NCLT
- **Order date:** 26 Nov 2024
- **Citation:** TCN-2024-NCLT-00169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spark-green-energy-satara-limited-2887bc36

## Summary

### Background

The case involves two interim applications (IA No. 1626/2024 and IA No. 3067/2024) arising from the same set of facts in the Corporate Insolvency Resolution Process (CIRP) of Spark Green Energy (Satara) Limited. Union Bank of India initiated the CIRP under Section 7 of the Insolvency and Bankruptcy Code (IBC). Liquidation was ordered on 28.07.2023, and a liquidator was appointed. The liquidator, along with Shri Dutt India Private Limited (the successful bidder in an e-auction), sought confirmation of the sale of the Corporate Debtor as a going concern without dissolution and directions for the Registrar of Companies (RoC) to reflect the Corporate Debtor's status as active.

## Facts

Union Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Spark Green Energy (Satara) Limited under Section 7 of IBC, leading to liquidation on 28.07.2023. The liquidator appointed, Mr. Ashok Kumar Golechha, took actions as per IBBI (Liquidation Process) Regulations, 2016. The average liquidation value for land and building was Rs. 2,63,98,325/-, and valuation of plant and machinery was Rs. 9,50,50,000/-. The Stakeholders Consultation Committee (SCC) resolved to sell the Corporate Debtor as a going concern for a reserve price of Rs. 14.50 Crore. Shri Dutt India Private Limited emerged as the successful bidder in the e-auction held on 16.10.2023, placing a bid at the reserve price. The Letter of Intent was issued on 17.10.2023. The successful

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## Issues and analysis

### Issue 1: Whether the Tribunal should confirm the sale of the Corporate Debtor as a going concern without …

**Ratio:** The commercial wisdom exercised by SCC is neither subject to review of this Tribunal nor

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**Reasoning:** The statute intentionally left the decision and sale process to the SCC and the

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**Interpretation:** The role of the Adjudicating Authority is limited in an auction sale, and the

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**Application:** The Tribunal found no merits in the prayer seeking confirmation of Sale by the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Ashok Kumar…
- **Respondents:** Spark Green…; Dutt India…
- **Advocates:** Gaurav…; Rashi…; +2 more

## Timeline

- **2019-11-28 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated vide…
- **2021-09-14 — CoC Meet…**: Committee of Creditors ('CoC') in…

## 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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