9911796707
TMI Blog2019 (10) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... Insolvency & Bankruptcy Code, 2016 (the Code) against the Resolution Professional (RP) and another Financial Creditor, namely, International Asset Reconstruction Company Private Limited, seeking reliefs as follows:- a. setting aside the decision of the RP dated 16.04.2019 rejecting part claim of the Applicant Bank and consider the entire claim of the Applicant as Financial Creditor; b. directing the RP to conduct valuation of the property of the Corporate Debtor situated at Perungudi Electronic Estate to arrive at proper fair value and liquidation value; and c. directing the RP to reconstitute the CoC with the original voting share of 27.96% of the Applicant Bank and consequently present the Resolution Plan for fresh voting by CoC. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Corporate Debtor failed to pay interest over those debentures as agreed by the parties, this Applicant Bank filed three Recovery Applications before Debts Recovery Tribunal-II, Chermai (DRT-II) in O.A.No.299/2000 (renumbered as O.A.No.256 of 2007), O.A.No.441/2002 (renumbered as O.A.No.235 of 2007) and O.A.No.266/2002 against the Corporate Debtor. When mistakes crept in the Debt Recovery Application filed by the Applicant Bank having been noted and then the applicant was directed by the Hon'ble Supreme Court of India to initiate proceedings afresh, the Applicant Bank has initiated DRT proceedings against the Corporate Debtor and it is still pending. 6. Now the issue before this Bench is, on this Company Petition being admitted against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue determined by theJRP over the aforesaid land is decimal in value against the approximate value of Rs. 18.74 crore given by valuer of the Applicant Bank on 24.06.2019. In addition to it, this Applicant counsel has further stated that even at the time of mortgaging the property to the applicant bank, the valuation of the land at that point of time, i.e., in 2013, was shown as Rs. 17 crore. He says, since the liquidation value given by the RP being too low and incomparable with the market value of the asset, the liquidation value given by the RP shall be ignored and fresh valuation shall be given so as to maximise the value of the asset of the Corporate Debtor. 10. As against this argument, the RP counsel has further stated that this land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the land presently lying in the name of the Corporate Debtor is admittedly belonging to the Government of Tamil Nadu and only possession has been lying with the Corporate Debtor basing on the Assignment Deed executed in the year 1989. It is also an admitted fact that this land cannot be used for any other purpose other than the purpose mentioned in the Assignment Deed and there is also no provision entitling the Corporate Debtor to create third party rights, therefore, the value of the property cannot be ascertained basing on the market value prevailing in the vicinity around this land. Maybe it is true that the charge was created over this property by the Bank with the consent of the Government, but that consent will not make any diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on some fees paid by the Corporate Debtor with a rider that land shall remain used for the purpose for which it is taken and it shall not be created with any third party rights, the occasion for valuing it basing on market value will never arise. 15. It is understandable if any fraud has been played by the parties in arriving at liquidation value, then it could become a ground for re-examining the valuation process already arrived at. Unless such ground is in existence, this Bench cannot repeat the process of valuation. Here no such ground, except saying if the asset is valued at market value, it would fetch Rs. 18 Crore. As we all know, time is the essence of this Code and there being no tenable ground for repeating the process when it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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