2022 (6) TMI 869 - Tri - Insolvency and Bankruptcy

Requirement of having custody, control and possession of the Unit in order to discharge duties as the Liquidator - HELD THAT - The respondents in this matter are not represented in spite of notice having been served on the respondents. It is very important to notice here that the Liquidator, is an Officer of the Court appointed under the Code for the purpose of performing his statutory duties under section 35 of the Code. The Liquidator has the power to take into custody and control all the assets, property, effects and actionable claims of the Corporate Debtor and have them evaluated, and to take all such measures to protect and preserve the assets and properties of the Corporate Debtor as he considers necessary. The statutory duties assigned to the Liquidator under the Code cannot be performed if the other law enforcing authorities do not cooperate with the Liquidator and provide him necessary aid and assistance, when it is required to enable him to perform his duties as per law. In this matter the timely assistance has not been provided by Respondent Nos. 2 and 3 to have the custody and possession of the immovable and moveable properties of the Durgapur Unit of the Corporate Debtor from Respondent No. 1. Respondent No. 1 is directed to immediately hand over the Durgapur Unit of the Corporate Debtor situated at Banskopa, L T More, NH-2, Durgapur, under Gopalpur Gram Panchayat, Police Station-Kanksa, District-Paschim Burdwan, Pin-713212, which is being illegally occupied by Respondent No. 1 including all the moveable lying therein that belong to the Corporate Debtor. If there is any disobedience or reluctance or resistance on the part of Respondent No. 1 in handing over the said premises to the applicant as directed herein, Respondent No. 2 and 3 are directed to provide all types of assistance and protection to the applicant to enable him to enter into and take custody, control and possession of the said unit and discharge his duties as the Liquidator and carry out the orders passed by this Adjudicating Authority. Application disposed off.

Summary

Issues involved:
Interlocutory Application regarding possession of Corporate Debtor's property, non-cooperation of Respondent No. 1, jurisdiction of City Civil Court, appointment of Liquidator, police assistance in liquidation process.

Analysis:
1. The applicant, appointed as Liquidator, faced non-cooperation from Respondent No. 1 in taking possession of Corporate Debtor's property, leading to manhandling incidents and legal actions.
2. Respondent No. 1 filed a suit in City Civil Court claiming tenancy rights based on alleged forged documents, challenging the jurisdiction of the Court.
3. The Liquidator sought police assistance for possession of the property, highlighting the necessity of cooperation from law enforcement agencies for successful liquidation proceedings.
4. The Tribunal directed Respondent No. 1 to hand over the property to the Liquidator and instructed law enforcement to provide necessary assistance, emphasizing strict action against any hindrance.
5. The Liquidator was given a deadline to take possession with police support and report back to the Tribunal, ensuring compliance with the Code and the Tribunal's orders.
6. The Interlocutory Application was disposed of with the specified directions for possession and further proceedings, with the main case scheduled for a future date.
7. The order's certified copy was to be issued to concerned parties upon formal application, ensuring transparency and compliance with legal procedures.