2022 (4) TMI 9 - Tri - Insolvency and Bankruptcy

Seeking permission to carry out the sale of the Corporate Debtor, as a going concern - Sections 35(1)(N) 60(5)(C) of The Insolvency Bankruptcy Code, 2016 read with Regulation 44(2) Of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 - HELD THAT - It is seen from the record, that the Stakeholder Committee Meeting, held on 11.11.2021, where they have already approved the aforesaid proposal, with more than 83.37% voting share, as mentioned at Para 26 of the present application. The Corporate Debtor is an Engineering Procurement and construction contractor and has been executing projects in many states of India. The Corporate Debtor was brought under Liquidation vide order 21.08.2018. The amount realised is based on the sale of the property of the corporate debtor, which has been distributed to the stakeholders. Few more assets of the Corporate Debtor are available at the project sites, which are required to be sold, as a going concern and value maximisation will be affected and beneficial to the stakeholders. These two projects required further time, resources and efforts and the liquidator. Therefore, it seems appropriate that it should be sold as a going concern, to that effect the stakeholders have already given their consent - application allowed.

Summary

Issues: Application for permission to carry out the sale of the Corporate Debtor as a going concern under Sections 35(1)(N) & 60(5)(C) of the IBC, 2016.

Analysis:
1. The liquidator filed an application seeking permission to sell the Corporate Debtor as a going concern under Sections 35(1)(N) & 60(5)(C) of the Insolvency and Bankruptcy Code, 2016, along with Regulation 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
2. The Stakeholder Committee Meeting approved the proposal with more than 83.37% voting share, indicating support for the sale of the Corporate Debtor. The Corporate Debtor, an Engineering Procurement and Construction contractor, had completed various projects during the liquidation process.
3. Details of the property held and sold during liquidation included immovable properties like the Corporate office, factory, and a property in semi-finished condition. The proceeds from the sale were distributed to stakeholders, with specific mention of properties sold and amounts realized.
4. The liquidator highlighted the necessity to sell remaining assets of the Corporate Debtor at project sites as a going concern to maximize value for stakeholders. Two projects were identified for completion, requiring further time, resources, and efforts, which stakeholders had consented to sell as a going concern.
5. The Tribunal, after reviewing the application and considering the stakeholders' approval, allowed the application under IA-5561/2021, granting permission to carry out the sale of the Corporate Debtor as a going concern. The case was disposed of, with pending applications scheduled for a physical hearing on a specified date.