# In the matter of Varron Autokast Limited

> NCLT judgment dated 2023-07-21. Citation: TCN-2023-NCLT-02383. The case involves an application filed by Prakash Traders, the successful bidder in an…

- **Court:** NCLT
- **Order date:** 21 Jul 2023
- **Citation:** TCN-2023-NCLT-02383
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/varron-autokast-limited-84a62060

## Summary

### Background

The case involves an application filed by Prakash Traders, the successful bidder in an e-auction for the sale of Varron Aukokast Limited (Corporate Debtor) as a going concern during liquidation. Prakash Traders sought certain reliefs and concessions from the NCLT to facilitate the acquisition and revival of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor after a petition filed by Indian Overseas Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Liquidation proceedings were initiated after no resolution plan was received. Prakash Traders emerged as the successful bidder with a bid of Rs. 121,00,00,000/-.

## Facts

The Financial Creditor, Indian Overseas Bank Limited, initiated Corporate Insolvency Resolution Process (CIRP) against Varron Aukokast Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated on December 13, 2019. After no resolution plan was received, liquidation proceedings were initiated on December 23, 2021, and Avil Menezes was appointed as the Liquidator. The Liquidator conducted an e-auction for the sale of the Corporate Debtor as a going concern. Prakash Traders emerged as the successful bidder with a bid of Rs. 121,00,00,000/- on May 19, 2022, and the Respondent declared and confirmed the Applicant as the successful bidder on June 18, 2022. The Applicant paid the entire consideration to the Respondent. The

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## Issues and analysis

### Issue 1: Whether the Tribunal can grant reliefs and concessions to the successful bidder of a Corporate …

**Ratio:** The Tribunal is empowered to grant necessary reliefs to facilitate the full acquisition

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**Reasoning:** The Tribunal observed that the request of the Applicant is reasonable and justified, and

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**Interpretation:** The interpretation is that the NCLT has the authority to provide reliefs and

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**Application:** The Tribunal applied this principle by granting prayer clauses (a), (b), (c),

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## Parties

- **Judges:** Shyam Babu…; Kuldip Kumar…
- **Appellants:** Prakash T…
- **Respondents:** Varron Aukokast…; Avil Me…
- **Advocates:** Shyam Ka…; Himanshu V…; +2 more

## Timeline

- **2019-12-13 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2021-12-23 — Liquidation Proceedings…**: Liquidation proceedings were initiated…

## 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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