2019 (6) TMI 1 - HC - Insolvency and Bankruptcy

Application for Early Hearing - HELD THAT - The petitioner s application moved, as early as on 24.12.2018, for the purpose of de-sealing of the properties and delivery of the same to the Resolution Professional is still pending. The early hearing application moved by the Resolution Professional has also not been entertained. The learned DRAT are directed to hear and dispose of the applications of the Resolution Professional within the next one week - petition disposed off.

Summary

Issues:
1. No objection by respondent bank for the Resolution Professional to take over assets.
2. Delay in disposal of perishable goods by Resolution Professional.
3. Appointment of Receiver hindering Resolution Professional's actions.
4. Pending application for de-sealing of properties.
5. Delay in hearing Resolution Professional's application.
6. Direction to DRAT for prompt disposal of Resolution Professional's applications.
7. Permission for Resolution Professional to inspect premises and goods.
8. Liberty granted to Resolution Professional in case of further delay.

Analysis:
1. The respondent bank provided a no objection for the Resolution Professional, appointed under the Insolvency and Bankruptcy Code 2016, to take over the assets of the borrower company, including movable and immovable properties.

2. The petitioner highlighted the urgency in disposing of perishable goods, such as grains, to salvage their value. The Resolution Professional faced a delay in taking necessary steps within the stipulated 180 days, with 120 days already passed, due to the appointment of a Receiver by the Debt Recovery Appellate Tribunal (DRAT).

3. The keys of the sealed premises were handed over to the respondent bank by the appointed Receivers, with the premises guarded by bank consortium's security. The petitioner's application for de-sealing the properties and handing them over to the Resolution Professional remained pending, along with an unaddressed early hearing application.

4. In response to the circumstances, the court directed the DRAT to promptly hear and dispose of the Resolution Professional's applications within a week. Meanwhile, the Resolution Professional was permitted to inspect the premises, goods, and records, with the Receivers instructed to de-seal the premises for the Resolution Professional's access.

5. If the DRAT failed to resolve the applications within the specified period, the Resolution Professional was granted the liberty to file an application in the present petition, ensuring a mechanism for addressing further delays.

6. The judgment concluded by disposing of the petition based on the terms outlined, with an order for physical delivery under the signature of the Court Master.