Authority: National Company Law Tribunal, Kolkata Bench

Order Date: 10 June 2026

Case Overview

This application was filed by Mr. Sanjeev Jhunjhunwala, the Liquidator of Dooteriah & Kalej Valley Tea Private Limited, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 12 December 2017 and ordered into liquidation on 17 October 2025. The Liquidator sought permission to sell the Corporate Debtor as a going concern on an "as-is-where-is" basis, arguing that this would maximize value for the integrated tea operations consisting of three estates (Dooteriah, Kalej Valley, and Peshok) and two factories in Darjeeling. The fair value and liquidation value were assessed at ₹26.59 crore and ₹3.8 crore respectively. The Stakeholders' Consultation Committee had recommended this approach to preserve synergy between the gardens, where only two have processing facilities and Peshok's produce is processed there. A supplementary affidavit revealed that while leases for three gardens expired in 1987, the lease for Peshok is valid until 2035, though the deed was not available from the suspended board.

The Liquidator contended that despite the omission of Regulations 32(e), 32(f), and 32A from the IBBI (Liquidation Process) Regulations effective 14 October 2025, the Tribunal retained power under Section 60(5) to order a going-concern sale to fulfill the Code's objectives of value maximization and preservation of the corporate debtor. Reference was made to a similar order in the matter of Bhumya Tea Company Private Limited.

Final Outcome

The Tribunal rejected the prayer for a going-concern sale or transfer of the Corporate Debtor as a juristic entity, noting that the regulatory amendments prospectively removed this mode of sale. Since no e-auction had been notified or conducted under the erstwhile Regulation 32(e), the process was deemed not commenced, making the application non-maintainable. However, the Liquidator was permitted to explore the sale of all assets, rights, interests, licenses, and properties of the Corporate Debtor as a composite package or via slump sale under Regulation 32(b). The purchaser would acquire only legally transferable assets subject to statutory approvals, with no automatic right to renewal of leases or licenses. The application was disposed of accordingly.

Topics: Insolvency Liquidation, Tea Estate Sale, Regulatory Amendments