# In the matter of Vimal Oil & Foods Limited

> NCLT judgment dated 2024-10-07. Citation: TCN-2024-NCLT-00484. The case involves an application (IA/471(AHM)2022) filed in connection with a corporate…

- **Court:** NCLT
- **Order date:** 7 Oct 2024
- **Citation:** TCN-2024-NCLT-00484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vimal-oil-foods-limited-1cc78373

## Summary

### Background

The case involves an application (IA/471(AHM)2022) filed in connection with a corporate insolvency resolution process (CIRP) initiated against Vimal Oil & Foods Limited (CP(IB) 135 of 2017). The applicant, Arrihum Tradelink Private Limited, was the successful purchaser of the corporate debtor (Vimal Oil & Foods Limited) during its liquidation process. The liquidation was initiated after no resolution plan was approved during the CIRP. The applicant sought various reliefs and concessions to continue the corporate debtor as a going concern, including directions to classify deposited amounts, extinguish existing shares, restore listing rights, and extinguish liabilities. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC),

…

## Facts

Arrihum Tradelink Private Limited (Applicant) was the successful purchaser of Vimal Oil & Foods Limited (Corporate Debtor) during its liquidation. The Corporate Debtor was admitted into CIRP on 19.02.2017, but no resolution plan was approved. The liquidation of the Corporate Debtor was approved on 19.12.2019. The Liquidator published a sale notice on 02.11.2020, and an e-auction was conducted on 01.12.2020. The Applicant was the highest bidder, and a sale agreement was executed on 03.03.2021. The Applicant sought various reliefs and concessions to run the Corporate Debtor as a going concern, including classifying deposited amounts, extinguishing existing shares, and restoring listing rights. The Applicant referred to judgments passed by various NCLTs and Courts,

…

## Issues and analysis

### Issue 1: Whether the sale of the corporate debtor as a 'going concern' during liquidation was valid and …

**Ratio:** The principle of 'as is where is, whatever there is basis and without recourse basis'

…

**Reasoning:** The tribunal found that the sale process was flawed due to the exclusion of certain

…

**Interpretation:** The 'as is where is' principle does not absolve the liquidator of the duty to

…

**Application:** In this case, the tribunal determined that the liquidator failed to meet these

…

## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Arrihum Tradelink…
- **Respondents:** Vimal Oil and…; Manoj Kh…

## Timeline

- **2017-02-19 — CIRP Init…**: Corporate debtor…
- **2019-12-19 — Liquidation A…**: Liquidation of the corporate debtor…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vimal-oil-foods-limited-1cc78373