2022 (6) TMI 1292 - Tri - Insolvency and Bankruptcy

Attachment of Company's properties - benami property - HELD THAT - The Liquidator has to take appropriate steps before the concerned forum to get the order for removing attachment. It is for the Liquidator to get the property either as an asset belongs to the liquidation estate or it is a benami property - the Liquidator is given liberty and right to proceed with for removing attachment and get the property identified and add it to the liquidation estate, if applicable. Application closed.

Summary

Issues involved:
Ambiguity in dealing with property attachment in a common order passed by the Tribunal.

Analysis:
The judgment addresses the issue of ambiguity in dealing with property attachment in a common order passed by the Tribunal. The Counsel for the Liquidator/Applicant raised concerns regarding the attachment of property and sought clarity on how to proceed. The Tribunal clarified that the Liquidator is not barred by the Insolvency and Bankruptcy Code (IBC) from adding attached properties to the liquidation estate for liquidation proceedings, provided they are part of the Liquidation Asset unless proven otherwise. The Respondent contended that the attached properties are not the Company's properties and, therefore, do not fall under the liquidation estate. However, the Tribunal found no conflict between statutes and emphasized the Liquidator's right to take appropriate steps to remove the attachment and determine the property's status as either belonging to the liquidation estate or being a benami property.

The judgment grants the Liquidator the liberty and right to proceed with removing the attachment, identifying the property, and adding it to the liquidation estate if applicable. It places the responsibility on the Liquidator to take necessary steps before the concerned forum to obtain an order for removing the attachment. The Tribunal's decision in this matter clarifies the Liquidator's role and authority in dealing with attached properties in the context of liquidation proceedings under the IBC. The judgment ensures that the Liquidator has the necessary autonomy to manage the assets of the liquidation estate effectively and in compliance with the relevant legal provisions.