2021 (7) TMI 180 - Tri - Insolvency and Bankruptcy

Seeking police protection and assistance to the Applicant and/or person(s) working under the Applicant in order to commence the process of auction and also the process of delivery of the Assets to the respective buyer - seeking necessary support and assistance to the Applicant and/or person(s) working under the Applicant to commence the process of auction - HELD THAT - The Applicant states that, in order to commence the procedure of auction of Assets and to stop the Owner from creating obstruction, he addressed an email dated 11th March 2021 to Superintendent of Police and the in-charge of the Respondent No 1, additional Superintendent of Police and District Magistrate of Betul stating that the local vendors may create disturbance on site at the time of delivery of the assets and therefore requested for assistance to ensure smooth flow of sale process and delivery of the assets - Further the Applicant states that, he has not received any reply nor assistance from the local Authorities and he is still not able to commence the process of auction of the Assets. Respondent Nos. 1 2 shall provide police protection to the Applicant immediately and assist him from any untoward incident taking place, to carry out his job as per directions of this Cour - Application disposed off.

Summary

Issues:
Application under Section 60(5) Read with 35(1)(n) of the Insolvency and Bankruptcy Code, 2016 seeking police protection and assistance for auction process and asset delivery.

Analysis:

Issue 1: Application for Police Protection and Assistance
The Applicant filed an application seeking orders for police protection and assistance to carry out the auction process and asset delivery. The Applicant, appointed as the Liquidator of the Corporate Debtor, faced obstruction from the Owner of the warehouse where assets were stored. The Owner's actions were hindering the auction process, preventing the Applicant from fulfilling his duties. Despite the Applicant's efforts to seek assistance from local authorities, no response or support was received. The Tribunal, after considering the facts presented, directed Respondent Nos. 1 & 2 to provide immediate police protection to the Applicant to ensure the smooth flow of the sale process and asset delivery, allowing him to carry out his responsibilities without interference.

This judgment highlights the importance of ensuring the protection of the Liquidator during insolvency proceedings, emphasizing the need for cooperation from relevant authorities to facilitate the auction process and asset delivery. The Tribunal's decision to order police protection underscores the significance of maintaining a conducive environment for the effective resolution of insolvency cases, safeguarding the interests of all stakeholders involved in the process.