Case Law Details
Eva Agro Feeds Private Limited Vs Punjab National Bank And Anr (Supreme Court of India)
Supreme Court of India held that disqualification under section 29A of the Insolvency and Bankruptcy Code is without any substance as the related party had ceased to be in the helm of affairs of the corporate debtor more than a decade ago.
Facts- Huvepharma Sea (Pune) Private Limited filed an application u/s. 9 of the Code against M/s. Amrit Feeds Limited e. corporate debtor before the Tribunal. The Tribunal passed an order admitting the application filed u/s. 9 of the Code as a result of which corporate insolvency resolution process of the corporate debtor commenced.
For auction sale of the assets of the corporate debtor, appellant submitted its bid dated 16.07.2021 to Respondent No.2 on 17.07.2021 in respect of the assets of the corporate debtor (in liquidation). In terms of the sale notice, appellant paid the earnest money deposit (EMD) of Rs.1 crore in respect of the subject property.
On 20.07.2021, appellant received an E-auction certificate from Respondent No.2 certifying that it had won the auction for the assets of the corporate debtor put up for auction sale. On 21.07.2021, appellant by way of an e-mail requested Respondent No.2 to issue allotment letter in respect of the subject property. On 21.07.2021 itself appellant received an e-mail of the aforesaid date from Respondent No.2 informing that Respondent No.2 had cancelled the E-auction held on 20.07.2021 un-der Clause 3(k) of the Disclaimer Clause in the E-Auction Process Information Document. The appellant was further informed that a fresh E-auction would be conducted for the subject property.
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