2020 (11) TMI 1033 - Tri - Companies Law

Handing over of the custody of the vehicles to the RP within one swe and affidavit - HELD THAT - The Liquidator, as per section 429 of the Companies Act 2013, are directed to take the assistance of the Commissioner of Police in which jurisdiction this company is lying to locate the vehicle by showing the order already passed by this Bench on 26.09.2019. The Commissioner of Police is hereby suggested to assist the Liquidator in taking the custody of the vehicle within fifteen days hereof - The reason is the Bank financed the vehicle could not get back - the vehicleFlying in the name of the debtor company nor could get any payment. If any delay happens in tracing the vehicle, the value of it will get further reduced. List on 10.12.2020.

Summary

Issues: Compliance with tribunal order regarding handing over custody of vehicles to RP; Review application filed by R3; Interpretation of review power under Companies Act, Company Rules, and IBC; Responsibility of R3 in relation to debtor company affairs; Direction to Liquidator to seek assistance of Commissioner of Police in locating vehicle.

The judgment pertains to an order issued by the tribunal regarding the handing over of vehicle custody to the RP. The bench directed R3 to comply with the order by handing over the vehicles and supplying necessary documents. A review application was filed by R3 against the order, but the tribunal dismissed it, stating that review power is not granted to NCLT under the Companies Act, Company Rules, or IBC. The tribunal emphasized that if a party is aggrieved by an order, they should file an appeal before NCLAT instead of seeking a review. As R3 failed to comply with the order, the tribunal held that the order stands.

Regarding the responsibility of R3 in relation to the debtor company, R3's counsel argued that R1 and R2, as founder directors, are solely responsible for the company's actions. However, the tribunal noted that the order was specifically against R3, and as no appeal or stay was obtained, the non-compliance persists. Therefore, the tribunal directed the Liquidator, under Section 429 of the Companies Act 2013, to seek assistance from the Commissioner of Police to locate the vehicle within fifteen days. The tribunal highlighted the importance of locating the vehicle promptly to prevent further reduction in its value, as the bank financed the vehicle and has not received payment.

In conclusion, the tribunal emphasized the necessity of complying with its orders and directed the Liquidator to take proactive steps to locate the vehicle. The judgment underscores the importance of adherence to tribunal directives and the consequences of non-compliance in insolvency proceedings.