2019 (8) TMI 1744 - AT - Companies Law

Permission to sell or alienate the movable properties with regard to 82 Red Entities to keep them as a going concern - HELD THAT - We are not expressing any opinion with regard to Red Entities which are going concern. If any movable asset is required to be sold/ transferred, it will be open to the Board of Directors for taking permission of Hon ble Justice Shri D.K. Jain, Former Judge of Supreme Court, as observed on 08.08.2019. We make it clear that the Interim Order passed on 08.08.2019 will not come in the way of Red Entities to pay salary of its Employees/ Workman, Officers and Operational creditors to keep the Red Entities going concern. Application disposed off.

Summary

Issues:
1. Permission for sale or alienation of movable properties of Red Entities by ILFS Board of Directors.
2. Payment of salaries to employees, workmen, officers, and operational creditors of Red Entities.
3. Liberty granted to ILFS/Board of Directors to bring prayer before Hon'ble Justice Shri D.K. Jain.
4. Disposal of I.A. No. 2009, 2010, 2011 & 2012 of 2019.

Analysis:

1. The judgment addresses the issue of permission for the sale or alienation of movable properties of Red Entities by the ILFS Board of Directors. The counsel for ILFS requested permission for the sale or transfer of movable assets of 82 Red Entities to maintain them as a going concern. The Tribunal allowed this request, stating that if any movable asset needs to be sold or transferred, the Board of Directors must seek permission from Hon'ble Justice Shri D.K. Jain, a former Judge of the Supreme Court. The Tribunal clarified that the Interim Order from a previous date would not hinder the Red Entities from paying salaries to employees, workmen, officers, and operational creditors to ensure the continuity of their operations.

2. Regarding the payment of salaries to employees, workmen, officers, and operational creditors of the Red Entities, the Tribunal emphasized that the Interim Order would not obstruct the Red Entities from fulfilling these financial obligations. This directive aims to maintain the functioning of the Red Entities and ensure the timely payment of dues to employees and creditors.

3. The judgment grants liberty to ILFS/Board of Directors to present their prayer before Hon'ble Justice Shri D.K. Jain. This provision allows ILFS to bring their concerns or requests before the designated authority for further consideration and appropriate action. Additionally, the Tribunal mandated that any organization, including ONGC, must respond to notices from Hon'ble Justice Shri D.K. Jain to avoid disobedience of the Tribunal's order.

4. Finally, the judgment concludes by disposing of I.A. No. 2009, 2010, 2011 & 2012 of 2019. This disposal indicates that the specific applications filed in this regard have been addressed, and any further actions related to these applications should comply with the directives provided in the judgment.