# In the matter of Sri Venkatramana Spinners Private Limited

> NCLT judgment dated 2024-07-26. Citation: TCN-2024-NCLT-00949. The case pertains to IA(IBC)/1262/CHE/2024 filed in IBA/216/2019, concerning the insolvency…

- **Court:** NCLT
- **Order date:** 26 Jul 2024
- **Citation:** TCN-2024-NCLT-00949
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-venkatramana-spinners-private-limited-6d60e3af

## Summary

### Background

The case pertains to IA(IBC)/1262/CHE/2024 filed in IBA/216/2019, concerning the insolvency resolution of M/s. Sri Venkat Ram Spinners Private Limited. The CIRP was initiated based on an application by State Bank of India under Section 7 of IBC, 2016. Mr. Mahalingam Suresh Kumar was appointed as the IRP and later confirmed as the RP. A resolution plan was initially approved but later contravened, leading to a decision to liquidate the Corporate Debtor. The liquidator then initiated e-auction processes to sell the Corporate Debtor as a going concern.

## Facts

The Corporate Debtor, Sri Venkat Ram Spinners Private Limited, underwent CIRP initiated by State Bank of India under Section 7 of IBC, 2016. Mahalingam Suresh Kumar was appointed as IRP and later RP. The resolution plan failed, leading to liquidation. The liquidator conducted multiple e-auctions to sell the Corporate Debtor as a going concern. Several e-auction attempts failed due to lack of bidders or non-deposit of EMD. The Stakeholder Consultation Committee (SCC) met multiple times to decide on the auction process and reserve prices. Eventually, in the 7th e-auction, a successful bidder, M/s. H.R Commercial Private Limited, was identified for Lot-1 (sale of the Corporate Debtor as a going concern). The liquidator sought confirmation of the sale and immunity for the

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## Issues and analysis

### Issue 1: Whether the sale of the Corporate Debtor as …

**Ratio:** The principle of maximizing the value of the Corporate Debtor's assets during liquidation

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**Reasoning:** The Tribunal considered the efforts made by the liquidator to sell the Corporate Debtor

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**Interpretation:** The confirmation of the sale as a going concern aligns with the objectives of

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**Application:** The Tribunal applied this principle to the facts of the case, noting that the

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Venkat Ram…
- **Advocates:** T.K. Bh…; A.G. Sathyanarayan…

## Timeline

- **2018-08-09 — CIRP Init…**: CIRP initiated against Sri Venkat Ram Spinners Pvt. Ltd based on application by State…
- **2019-08-17 — Public Annou…**: IRP issued public…

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