9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 881 - Tri - Insolvency and BankruptcySeeking direction to issue RC Book after entering Shri. S.K. Pandyan, Proprietor of M/s. S.K., Traders in respect of Vehicle - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The property of the Corporate Debtor has been sold with existing and future encumbrances whether known or unknown to the Liquidator. The Applicant who is very well aware of the said terms and conditions imposed by the Liquidator has participated in the E-Auction Sale and has emerged as the successful bidder. At this point of time, after paying the entire sale consideration, the Applicant cannot invoke Section 238 of IBC, 2016 or Section 60(5) of IBC, 2016 seeking directions against the Respondent to register the vehicle in their favour. Further, eventhough in the Application it has been averred that a charge has been created as against the said vehicles in the name of Cholamandalam Investment Finance Company, for the reasons best known to the Applicant, they have not impleaded the said Cholamandalam Investment Finance Company as party Respondent in the present Application. Since the name of Cholamandalam Investment Finance Company is reflected in the RC Book, all parties are aware of the charges at the time of auction - In the present case, since the property of the Corporate Debtor has been sold on 'as is where is basis', the Applicant ought to have approached the proper authority seeking directions against the 2nd Respondent. Application dismissed.
Issues:
- Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking relief for issuance of RC Book and name transfer for vehicles purchased in E-Auction. - Dispute regarding the issuance of duplicate RC books for vehicles purchased in E-Auction. - Interpretation of Section 238 of IBC, 2016 in relation to demanding pending road tax prior to CIRP or liquidation process. - Liability of successful bidder in E-Auction for paying previous dues on assets purchased under liquidation. - Absolution of successful bidder from previous dues upon purchasing assets under liquidation. Detailed Analysis: 1. The Applicant filed an Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking relief for the issuance of RC Book and name transfer for vehicles purchased in an E-Auction conducted after the Corporate Debtor went into liquidation. The Applicant had paid the sale consideration and fulfilled the terms of the auction. 2. The Applicant's Counsel argued that the Liquidator had issued a sale certificate, but the original RC Books were missing for 3 out of 5 vehicles purchased. The Liquidator had initiated the process for duplicate RC books, but the 2nd Respondent demanded payment of road tax and other charges for the vehicles. 3. The Applicant contended that as a bonafide purchaser participating in the E-Auction, the 2nd Respondent should not demand pending road tax prior to the CIRP or liquidation process. The Applicant sought a direction to issue duplicate RC books without additional conditions. 4. The 1st Respondent's Counsel argued that the assets were sold "as is where is," and the E-Auction terms stated that some vehicles did not have original RC Books. The Liquidator had requested waiver of road tax, but the 2nd Respondent demanded payment. 5. The Tribunal noted that the E-Auction terms made it clear that the property was sold with existing and future encumbrances. The Applicant, being aware of these terms, could not invoke IBC sections seeking registration of vehicles post-purchase. 6. The Tribunal highlighted that the Applicant did not involve a charge holder in the proceedings, even though the RC Book reflected the charge. Buying assets under liquidation does not absolve the successful bidder from paying previous dues, if any. 7. The Tribunal emphasized that the Applicant should have approached the proper authority regarding the 2nd Respondent's demands. The application was dismissed as the property was sold on an "as is where is basis," and the Applicant failed to show merit in their claims. 8. The judgment clarified the distinction between buying assets under CIRP and during liquidation, stating that successful bidders are liable for previous dues on assets purchased under liquidation. The Tribunal dismissed the application with no costs awarded.
|
