High Court · 2025

5. tr/l/s. Surya.iyoti Spiniing Mills Ltd " Burgul Villaoe' Fanoqnagar Mandal Ranga Reddy oistrici'reiresentJ ov G1'q'idator: G tvladhusudhan Rao 6. G. Madhusudhan Rao, S/o' Mr'G'Subba.Rao' Rlo T-1-285' Flat No 103' Sri sai swaona sunipao),niil, eilrrt#pEi Hv.aeiabad-500038' Appointed as the 6?li"iri ft,lii"tiilii rt rl. I5-u'vajvoth i s pi n ni ns M iIIs Ltd 7. National Company Law Tribunal' Hyderabad.Bench-ll' Represented by its -6;di.;t'"Eih;uiin, -einot-rda Tattiannaram Village' Reqistrar office at Hayatnagar rvlandal, #il's; HA;v'bittiitt' Hvoer.5uad-500068 ' ...RESPONDENTS PetitionunderArticle226oflheConstitutionoflndiaprayingthatinthe circumstances stated in the affidavit filed therewith' the High Court may be pleasedtoissueaWritofMandamusdeclaringtheordersdl.lT-07-2025passed by the Hon'ble NCLT in lA No.1 179 of 2025 in CP (1B) No' 166/7/HDB 12019 and i I i ! i i i t l I I i i I 1 i i : 1 1 l I --'---- the inabtion of the Respondent No.6 in withdrawing the E-Auction notice dt..1 9- 06-2025 fixing the date of E-Auction on 22-07 -202s as per the recommendation of the scc (stakehorders consurtation committee) in its 28th meeting herd on 14-07 -2025 as iregar, arbitrary, highhanded, in vioration of the rights guaranteed to the Petitioner under Section 230 of the companies Act, 2013, in vioration of the intention of the rnsorvency and Bankruptcy code, in vioration of the rights guaranteed to the petitioner under Articre 14 and 300-4 of the constitution of lndia with a consequentiar prayer to set aside the orders dt. 17_07_2025 passed by the by the Hon'bte NCLT in tA No.1 179 of 2025 in Cp (tB) No. 166r7rHDBr2019 and the auction notice dt.19-06-2025 tixing the date of E- Auction on 22-07 -2025. lA NO: 2 oF 2025 Petition under section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to stay E-Auction notice dt. 19-06-2025 fixing the date of E-Auction on 22-o7 _2025 issued by the Respondent No.6 for sare of the assets of the Respondent No.5 pending disposal of the above writ petition. Counsel for the petitioner: Ms. V.MADHAVI, REp. FOR SRI V.MURALI MANOHAR Counsel for the Respondent No.1 & 7: SRI B.MUKHARZEE, REp. FOR DEPUry SOLICITOR GENERAL OF INDIA Counsel for the Respondent No.6: Ms. p.VAJRA LAKSHMI The Court made the following: ORDER i I I I I I I I i THE HON'BL ETHEC HIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN Writ Petitio n No.2 L1-73 of 2025 ORDER: Heard Ms.V. Madhavi, learned counsel appearing for Mr.V.Murali Manohar, learned counsel for the petitioner' Mr.B.Mukharzee, learned counsel appearing for learned Deputy Solicitor General of Indla, for respondents No' 1 and 7 and Ms.P.Vajra Lakshmi, learned counsel for respondent No.6.

2. The writ Petition was preferred r'vith the follor'ving prayer: "For the reasons stated in the accompanying afhdavit' it rs hereby prayed that this Honble Court may be pleased to issue a Writ of Mandamus declanng the orders dated 17.07.2025 passed by the Honble NCLT in IA No 1179 of 2025 in CP (lB) No 166 17 /HDB l2ol9 and the inaction of the Respondent No.6 in withdrawing the E-Auction notice hxing the date of E-Auction on dated 19 .06.2025 the recomrnendation of the SCC 22.07 -2025 as Per (Stakeholders Consultation Committee) in its 28'h meeting held on 14.07.2Ci25 as illegal, arbitrary, highhanded' in violation of the rights guaranteed to the Petitioner under 2 Section 230 of the Comparies Act, 2O 13, in violation of the inLcntion of the lnsolvency and Bankruptcy Code, in violation o[ the rights guaranteed to the Petitioner under Article 14 and 3OO-A of the constitution of India with a consequential prayer to set aside the orders dated 17.07.2025 passed by the by the Honble NCLT in IA No.1179 of 2025 in CP (IB) No.166/7/HDB/ 2019 and the auction notice dated 19.06.2025 f,rxing the date of E-Auction on '22.07 .2025 ald to pass such other order or orders as this Honble Court may deems ht and proper in the circumst ances of the case- ' 3 . Arr interim order was passed ot 22 -O7 .2O2 5 in the follou'ing terms "\.\re hane heard learne d Senior Counsel for petitioner ald learned counsel for respondent No.2-Balk, the Official Liquidator ald the learned counsel representing him, The proceeclings before the learned NCLT, Hyderabad has been going for last six years. From the pleadings, it appears that previous efforts for reviva] of the company farled. That is wh1', the Official Liquidator issued auction notice on Ig.06.202-5.If the stakeholders are serious in the matter for arriving at a compromise, they could have arrlved at a decision well in advance. The meeting of Stakeholders Consultation Committee has been held about 8 days back i.e., on 14.07.2025- Till date, ttrey have not yet been able to hnalize the compromise proposal. In such circumstances, this Court is nol inclined to stay auction process. However, the Ofhcial Liquidator is allowed to make a fresh applicaLion rvrthin a rveek before the learned NCLT in case any I I I ,.--.:"aar.,Y*-i:r J comprornise is effected for revival of the company by the Stakeholders Consultation Committee' Learned Official Liquidator has informed that hefore issuance of sale certihcate, he has to convene a meeting of Stakeholders Consultation Committee 21d sgsk fresh approval. In such circumstances' it is open to the Ofhcia'l Liquidator to approach the learned NCLT within a week and seek for acceptance of such compromise held by the Stakeholders Consultation Committee within this time or for finalization of auction sale "

4. When the matter is taken up today' learned counsel for the petitioner, on instructions, submits that the auction sale notice did not fetch any bidder' Therefore' it failed' She seeks permission to withdraw the writ petition' 5. Accordingly, the instant writ petition is dismissed as withdrarvn. There shall be no order as to costs' Miscellaneous applications pending' if any' shall stand closed. ,TRUE COPY// SDi-T. SRINIVASA REDDY ISTANT REGISTRAR SECTION OFFICER One CC to SRI V.MURALI MANOHAR, Advocate I ucI One CC to Ms. P.VAJRA LAKSHMI, Advocate [OPUC] One CC to DEPUTY SOLICITOR GENERAL OF lNDlA, High Court for the State of Telangana at Hyderabad [OPUC] Two CD Copies To, 1 2 3 4_ BSR LS HIGH COURT DATED: 1910812025 ORDER WP.No.21173 o12025 ,';i:i""- .::., i\. 2 4 SEP zut :.. .t ,i .:: I I I l i I I i I I I DISMISSING THE WRIT PETITION AS WITHDRAWN, WITHOUT COSTS 6