9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1187 - AT - Insolvency and BankruptcyLiquidation Order - Section 33 (1) (a) of the Insolvency and Bankruptcy Code, 2016 - According to learned counsel for the Appellant, the order of liquidation may affect the Corporate Debtor and if the Central Government comes to know that it has gone for liquidation, it may not allow subsidies - HELD THAT - It is still open to the Ministry of Electronics Information Technology to release subsidies, if otherwise permissible, as in spite of the order of liquidation, the Corporate Debtor is to continue as a going concern to ensure revival and resolution even during the liquidation process. The Competent Authority of the Ministry of Electronics Information Technology will consider the case of the Corporate Debtor in terms with the direction of the Hon ble High Court of Delhi, as referred to above, uninfluenced by the order of liquidation, as the Corporate Debtor is to continue as a going concern. Appeal disposed off.
Issues:
1. Appeal against the order of liquidation under the Insolvency and Bankruptcy Code, 2016. 2. Eligibility of the Corporate Debtor for subsidies from the Central Government. 3. Impact of the order of liquidation on the Corporate Debtor's eligibility for subsidies. 4. Challenge of a letter denying subsidy disbursement by the Ministry of Electronics & Information Technology. 5. Review petitions and directions related to the liquidation process under Section 230 of the Companies Act, 2013. Analysis: 1. The appeal was filed against the order of liquidation passed under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The Appellant argued that the Corporate Debtor was eligible for subsidies from the Central Government, Ministry of Electronics and Information Technology, based on a pending decision of the Hon'ble High Court of Delhi. The Appellant contended that the order of liquidation might impact the Corporate Debtor's eligibility for subsidies, as the Central Government could withhold subsidies upon learning about the liquidation. 2. The Resolution Professional had filed an application requesting the pending of the order of liquidation until the outcome of a Writ Petition seeking subsidy disbursal from the Ministry of Electronics and IT. However, as more than 270 days had passed without a resolution plan, the order of liquidation was deemed appropriate by the Tribunal. The Ministry had previously informed the Resolution Professional that the subsidy claim of the Corporate Debtor was not approved, leading to legal challenges in the High Court of Delhi. 3. The High Court proceedings resulted in a Review Petition being allowed, directing the Ministry to re-examine the Corporate Debtor's subsidy claim expeditiously. Despite the ongoing liquidation process, the Tribunal declined to interfere with the order of liquidation, emphasizing the need for the Corporate Debtor to remain a going concern during liquidation. 4. The Tribunal referenced a previous decision regarding the liquidation process under Section 230 of the Companies Act, 2013, emphasizing the importance of ensuring the Corporate Debtor's revival and resolution even during liquidation. The Tribunal directed the Resolution Professional (now Liquidator) to follow the procedures outlined and ensure the Corporate Debtor's continuity as a going concern. 5. Consequently, the Tribunal held that the Ministry of Electronics & Information Technology should consider the Corporate Debtor's case in line with the High Court's directions, irrespective of the liquidation order. The Ministry was urged to release subsidies if permissible, as the Corporate Debtor was to continue as a going concern for revival and resolution purposes. The appeal was disposed of with these observations, emphasizing the Corporate Debtor's ongoing operations during the liquidation process.
|
