# Eva Agro Feeds Private  Ltd. Vs. Punjab National Banks & Anrs [Civil Appeal No. 7906/2021]

> SC judgment dated 2023-09-06. Citation: TCN-2023-SC-00045. The case involves an appeal against an order passed by the National Company Law Appellate Tribunal…

- **Court:** SC
- **Order date:** 6 Sept 2023
- **Citation:** TCN-2023-SC-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/eva-agro-feeds-private-ltd-vs-punjab-national-banks-anrs-7ca27ac4

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Appellate Tribunal (NCLAT), which had allowed an appeal by Punjab National Bank (PNB) against an order of the National Company Law Tribunal (NCLT). The NCLT had initially directed the liquidator to allow Eva Agro Feeds Private Limited to deposit the balance sale consideration for assets it had won in an e-auction. PNB's appeal to the NCLAT challenged this order, leading to the NCLAT setting aside the NCLT's decision and allowing the liquidator to initiate a fresh auction process. Eva Agro Feeds then appealed to the Supreme Court.

## Facts

Huvepharma Sea (Pune) Private Limited initiated corporate insolvency against Amrit Feeds Limited. The NCLT admitted the application on 2019-10-22, commencing the corporate insolvency resolution process. On 2021-02-19, the NCLT ordered the liquidation of Amrit Feeds, appointing a liquidator. The liquidator scheduled an e-auction for the corporate debtor's assets. Eva Agro Feeds Private Limited, incorporated on 2021-07-09, submitted a bid on 2021-07-16 and 2021-07-17, paying an earnest money deposit (EMD) of Rs. 1 crore. The assets included land and machinery in Uttar Pradesh. Eva Agro Feeds was declared the winner of the e-auction on 2021-07-20, bidding Rs. 10 crores, matching the reserve price. However, the liquidator cancelled the e-auction on 2021-07-21, citing

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## Issues and analysis

### Issue 1: Whether the Appellate Tribunal was justified in setting aside the order of the Tribunal and …

**Ratio:** The power to cancel an auction should be exercised reasonably and not arbitrarily,

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**Reasoning:** The Supreme Court found that the Appellate Tribunal erred in setting aside the Tribunal's

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**Interpretation:** The court emphasized that while a liquidator has the power to cancel an

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**Application:** In this case, the Liquidator cancelled the auction simply because he expected a

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## Parties

- **Judges:** UJJAL B…; B.V. NAGA…
- **Appellants:** EVA Agro Feeds…
- **Respondents:** Amrit Feeds…; Punjab National…
- **Other parties:** 7th Edition…; Liquida…; +9 more

## Timeline

- **2018-01-01 — CP(IB) No.440…**: CP(IB) No.440/KB/2018…
- **2019-10-22 — Application A…**: Tribunal passed an order admitting the application filed under Section 9 of the Code,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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