Case Note & Summary
The appeal arose from an order dated 17.06.2026 by the National Company Law Tribunal (NCLT), Ahmedabad, which rejected the application of the State Bank of India, the successful auction purchaser of the Corporate Debtor, for necessary reliefs related to the implementation of the sale. The core issue was whether the NCLT could revisit its earlier liquidation order dated 10.10.2025, which admitted the Corporate Debtor into liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant argued that the impugned order misapplied the IBBI (Liquidation Process) (Second Amendment) Regulations, 2025, as the liquidation had already commenced on 10.10.2025, and the subsequent amendment could not invalidate the ongoing process. The respondents supported this view. The court noted that prior to the amendment, the regulations allowed the Committee of Creditors to recommend the sale of the Corporate Debtor as a going concern during liquidation. The court emphasized that the liquidation order was substantive and effective from its date, and the auction process was a continuation of the liquidation process, not a new one. The court found that the impugned order incorrectly interpreted the retrospective application of the amendment, which jeopardized the sale and the commercial decision of the Committee of Creditors. The court set aside the impugned order and remanded the matter to the NCLT for examination of reliefs to be granted to the successful auction purchaser within two weeks. The appeals were disposed of with these directions.
Headnote
A) Insolvency Law - Liquidation Process - Validity of Sale as Going Concern - Insolvency and Bankruptcy Code, 2016, Section 33(2) - The court held that the liquidation process commenced on the date of the liquidation order, and subsequent amendments could not retrospectively alter the legal foundation of the process already initiated. The decision of the Committee of Creditors to explore sale as a going concern was integral to the liquidation order (Paras 1-20).
Issue of Consideration
Whether the Adjudicating Authority could revisit its earlier liquidation order while considering consequential reliefs.
Final Decision
The court set aside the impugned order and remanded the matter to the NCLT to examine the reliefs and concessions to be granted to the successful auction purchaser within two weeks.
Law Points
- Liquidation process
- Corporate Debtor
- IBC
- Committee of Creditors
- retrospective application of regulations
