# In the matter of Haldiram Incorporation Pvt. Ltd. vs.  Amrit Hatcheries Pvt. Ltd.

> SC judgment dated 2023-12-06. Citation: TCN-2023-SC-00004. The appeal concerns the auction sale of properties of a defaulting borrower. A sale certificate was…

- **Court:** SC
- **Order date:** 6 Dec 2023
- **Citation:** TCN-2023-SC-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/haldiram-incorporation-pvt-ltd-vs-amrit-hatcheries-pvt-ltd-ef4fe3b0

## Summary

### Background

The appeal concerns the auction sale of properties of a defaulting borrower. A sale certificate was issued on August 19, 2019, under the SARFAESI Act, related to immovable properties in Howrah, West Bengal. The auction sale involved properties mortgaged by the borrower (respondent no. 1), represented by a Liquidator under the Insolvency and Bankruptcy Code, 2016. An operational creditor filed a petition under Section 9 of the 2016 Code before the NCLT, leading to a moratorium on August 20, 2019, and initiating CIRP. The NCLT found the sale certificate and property handover illegal on February 25, 2020, stating the property should remain a Corporate Debtor asset. Punjab National Bank's appeal against this was dismissed on February 14, 2022.

## Facts

Haldiram Incorporation Pvt. Ltd. purchased properties in an auction sale of a defaulting borrower. The sale certificate was issued on August 19, 2019, under the SARFAESI Act. The properties are two blocks of land in Howrah, West Bengal. The auction sale involved properties mortgaged by the borrower, Amrit Hatcheries Pvt. Ltd., who defaulted on credit facilities. An operational creditor filed a petition under Section 9 of the 2016 Code before the NCLT, leading to a moratorium on August 20, 2019, and initiating CIRP. The NCLT found the sale certificate and property handover illegal on February 25, 2020, stating the property should remain a Corporate Debtor asset. Punjab National Bank's appeal against this was dismissed on February 14, 2022. The Liquidator and the

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## Issues and analysis

### Issue 1: Whether the auction sale was concluded before the declaration of moratorium under the Insolvency …

**Ratio:** The mandate of law in terms of Section 17(2)(xii) read with Section 89(4) of the

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**Reasoning:** The court noted that the respondents conceded the legitimacy of the auction sale and that

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**Interpretation:** The court interpreted that if the sale was concluded before the moratorium, the

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**Application:** Since the sale was concluded before the moratorium, the properties cannot be

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## Parties

- **Judges:** ANIRUDDHA…; VIKRAM…
- **Appellants:** HALDIRAM INCORPORA…
- **Respondents:** AMRIT HATCHERIES…

## Timeline

- **2019-08-19 — Sale Certifica…**: Sale certificate issued under the SARFAESI…
- **2019-08-20 — Moratorium D…**: Moratorium declared, initiating the…

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