Eva Agro Feeds Private Limited vs Punjab National Bank

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(SC) 840

B. V. NAGARATHNA, UJJAL BHUYAN
Eva Agro Feeds Private Limited – Appellant
Versus
Punjab National Bank – Respondent

Advocates appeared:
For the Appellant(s) : Mr. Parag Maini, Adv. Mr. Varun Lamba, Adv. Mr. Raghav Chadha, Adv. Ms. Nishtha Kumar, AOR Ms. Ira Mahajan, Adv.
For the Respondent(s) Mr. Rajesh Kumar Gautam, AOR Mr. Anant Gautam, Adv. Mr. Samir Mudgil, Adv. Mr. Sumit Sharma, Adv. Ms. Anani Achumi, Adv. Mr. Dinesh Sharma, Adv. Ms. Shivani Sagar, Adv. Mr. Krishnaraj Thaker, Adv. Ms. Pallavi Langar, AOR Mr. Siddhartha Bhatnagar, Sr. Adv. Mr. Ashish Choudhury, Adv. Mr. Akash Agarwal, Adv. Mr. Rahul Arya, Adv. Mr. Aditya Sidhra, Adv. Mr. Rohit Amit Sthalekar, AOR

Table of Content
1. overview of case background and procedural history. (Para 2 , 3)
2. court's analysis regarding auction cancellation. (Para 4 , 10 , 16 , 17 , 21 , 22 , 29 , 30 , 43)
3. arguments presented by the appellant and respondents. (Para 5)
4. details of auction process and liquidation. (Para 6)
5. decision to restore the tribunal's order, emphasizing adherence to legal principles. (Para 51)

JUDGMENT :

1. Application (I.A. No. 14220 of 2022) for intervention is allowed.

3. At the outset, it would be necessary to advert to the relevant facts:

4. This court by order dated 10.01.2022 had issued notice and passed an interim order staying the subsequent auction which was scheduled on 17.01.2022.

5.1. According to Respondent No. 1, it is a settled position that any auction sale, before completion, can always be cancelled. Tribunal had overlooked the provisions contained in Clause-13 of the Regulations which makes it clear that auction sale shall stand completed only on payment of full amount and not at the stage when the highest bidder is invited to provide balance sale consideration within 90 days from the date of demand. Tribunal relied upon Clause 12 of the Regulations as per which,

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2023 Supreme(SC) 840

B. V. NAGARATHNA, UJJAL BHUYANEva Agro Feeds Private Limited – AppellantVersusPunjab National Bank – Respondent

B. V. NAGARATHNA, UJJAL BHUYAN
Eva Agro Feeds Private Limited – Appellant
Versus
Punjab National Bank – Respondent