# In the matter of Sree Naidu Beverages Private Limited

> NCLT judgment dated 2024-07-12. Citation: TCN-2024-NCLT-01021. The case involves an application (IA(IBC)/176/2024) filed by Flywheel Logistics Solutions…

- **Court:** NCLT
- **Order date:** 12 Jul 2024
- **Citation:** TCN-2024-NCLT-01021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sree-naidu-beverages-private-limited-3abe4aa1

## Summary

### Background

The case involves an application (IA(IBC)/176/2024) filed by Flywheel Logistics Solutions Private Limited, the successful bidder for Sree Naidu Beverages Private Limited, which was undergoing liquidation. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulations 33(2)(D) and 32(e) of the IBBI (Liquidation Process) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. The applicant sought waivers and concessions related to the sale of the Corporate Debtor as a going concern. The Corporate Insolvency Resolution Process (CIRP) was initiated against Sree Naidu Beverages Private Limited by State Bank of India under Section 7 of the IBC, and the company was subsequently ordered into liquidation after failed

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## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Sree Naidu Beverages Pvt Ltd. under Section 7 of IBC, which was admitted on 2021-07-10. Mr. Krishna Mohan Gollamudi was appointed as Interim Resolution Professional (IRP) and later as Resolution Professional (RP). Despite inviting Expression of Interest (EoI), no Resolution Plan was received. The CoC recommended liquidation, and the Tribunal ordered liquidation on 2022-04-13, confirming the RP as Liquidator. Public announcement was made on 2022-06-03, and multiple e-auction attempts failed due to lack of interest at the set reserve prices. The Liquidator explored private sale options and engaged with stakeholders. Flywheel Logistics Solutions (P) Ltd expressed interest in

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## Issues and analysis

### Issue 1: Whether the benefits, privileges, rights, exemptions, and other entitlements usually available to a …

**Ratio:** The principle of treating a successful bidder acquiring a corporate debtor as a going

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**Reasoning:** The court reasoned that the similarities between resolution under CIRP and liquidation

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**Interpretation:** This interpretation emphasizes the intent of the IBC to promote the revival of

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**Application:** The court applied this principle by granting the bidder the same benefits and

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Flywheel Logistics…
- **Respondents:** Sree Naidu…; Krishnamohan…

## Timeline

- **2020-01-01 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Sree Naidu…
- **2021-07-10 — CIRP Admi…**: CIRP admitted against M/s.…

## 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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