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TMI Blog2019 (6) TMI 1421X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. This Tribunal while dealing with M.A. (IB) No. 585 and M.A.(IB) No. 586/KB/2019 on 7th May, 2019 passed the following orders:- "Misc. A. No. 585/KB/2019 as well as Misc. A. No. 586/KB/2019 has come up for consideration on this day, which has been filed individually challenging the order of sale of Nicco House (in Liquidation). Heard the Ld. Liquidator and the applicants who appeared in person. Upon hearing the argument, perusal of the records, prima facie I am satisfied that the applicants have established an arguable case. The Liquidator has submitted that agreement for sale was already executed and conveyance deed is to be executed within four months upon fulfilment of terms and conditions in the agreement by the buyer. Accordingly, the Liquidator is hereby directed not to proceed with the execution of Conveyance Deed until the disposal of the application. In the meanwhile, Liquidator is directed to file reply affidavit in Misc. A. Nos. 585 & 586/KB/2019 within 7 days by serving copy of the reply affidavit to the respective applicants. Applicants are directed to file rejoinder, if any, within 7 days of receipt of the reply affidavit by serving copy to the Liquidator. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... backdrop of the aforesaid Two orders passed by this Tribunal arguments have been heard today on behalf of all the applicants, Liquidator and the proposed buyer and these applications are being dealt with and disposed of by a common order. The Applicant in M.A. (IB) No. 585/KB/2019 submits that she is one of the Partners of M/S. Supreme Legal Services & Tax Consultants and has a Law Chamber in the premises in question for last more than a decade and is occupying a carpet area of about 214 sq.ft. with other common facilities. The specific objection of the Applicant in this application is the manner in which a portion of the 2nd Floor of Nicco House has been sold to another co-tenant and Advocate, without any public notice or prior information or without giving similar offer to the applicant or other tenant on the same floor. 5. It is submitted that the agreement to sale has been executed between the Respondent i.e. the Liquidator of the Corporate Debtor and M/S. Narnolia Financial Advisors Limited. 6. It is further submitted by the Applicant that it is not clarified as to how M/S. Narnolia Financial Advisors Limited had earlier taken part in the auction sale of the property and wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... called by the Purchasers representative, namely, M/S. Narnolia Financial Advisor Limited. When the Petitioner contacted the Liquidator he was advised to contact M/S. Narnolia Financial Advisor Limited for further correspondence and even making all sorts of payment directly to them. But the said M/S. Narnolia Financial Advisor Limited did not give any response to such letter. 13. In Inv. A. (IB) No. 604/KB/2019, the Applicant D&l Taxcon Services Private Limited, a tenant in respect of office space in Nicco House has filed this application. This applicant has filed this application as Operational Creditor for settling their claim which is pending. The Applicant No. 2 Tapas Dutta is the Director of Applicant No. 1 and is a practicing Advocate having a chamber in the premises at Nicco House. 14.1t is submitted in this application that the entire G+7 storied building is an unauthorized construction and he made a complaint vide letter dated 30th November, 2015 to the Kolkata Municipal Corporation for initiating demolition proceedings in respect of the said building. The applicant further states that on 9th October, 2018, the KMC tendered building plans bearing No. 69 issued on 19th Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to defraud the trust and to defeat the object that the liquidation proceedings of the corporate applicant. 20. The applicant, like other two applicants, sought leave to intervene in the Liquidation proceedings of the Corporate Applicant and sought stay of all proceedings in the liquidation proceedings like sale of Nicco House. The applicant further prays that the agreement for sale, if any be adjudged void and injunction restraining the Liquidator, his men, agents, servants and assignees from taking any step or further step or acting on the basis of the agreement for sale dated 15th March, 2019 or any other agreement or conveyance that may have been entered into in respect of the 2 nd floor of the said building, including the letter dated 10.04.2019 and 22.04.2019 issued by the Liquidator. The applicant further prays for restraining the Liquidator from holding himself out as the Liquidator or continuing to act as the Liquidator or intermeddling with the assets and properties of the corporate debtor in any manner whatsoever. 21. The Applicant further prays status-quo order in the meanwhile. 22. However, in M.A. (IB) No. 586/KB/2019 the respondent i.e. the Liquidator in the Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Debtor through an auction in the manner specified in Schedule l, Provided that the liquidator shall not sell the assets, without prior permission of the Adjudicating Authority, by way of private sale to - (a) a related party of the corporate debtor; (b) his related party; or (c) any professional appointed by him; and (3) The Liquidator shall not proceed with the sale of an asset if he has reasons to believe that there is any collusion between the buyers, or the corporate debtor's related parties and buyers, or the creditors and the buyer, and shall submit a report to the Adjudicating Authority in this regard, seeking appropriate orders against the colluding parties. Regulation 34 provides that - (1) On framing the liquidation estate under section 36, the liquidator shall prepare an asset memorandum in accordance with this Regulation within seventy-five days from the liquidation commencement date. (2) The asset memorandum shall provide the following details in respect of the assets which are intended to be realized by way of sale - (a) Value of the asset, valued in accordance with Regulation 35; (b) Value of the assets or business(s) under clauses (b) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicants who are stated to be tenants and/occupants of their respective portions in the said Lot 'A'. It is important to notice here that the applicant did not approach either the Liquidator or this Tribunal when the expressions of interest were published by the Liquidator on 7 (Seven) earlier occasions in the past on different dates, prior to the last expression of interest was published on 10th January, 2019, which finally culminate into the sale of the Lot 'A'. 30. The Liquidator has complied with all the requirements of the provisions of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 whereby he had to prepare an asset memorandum and also to obtain valuation at least from two Valuers and by using an average thereof he had to decide the reserve price. The Liquidator has filed the 5th Progress Report which includes the asset memorandum and the Valuation Reports and the reserve price has also been correctly ascertained. 31.We do not notice any irregularity in the sale process. If at all the applicants wanted to participate in the sale process or had any willingness or capability to purchase or had been claiming any right a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iated by the Liquidator. 3. One of the main points urged by the objectors/applicants is that the Liquidator obtained valuation report with some extraneous consideration and that the method of valuation is not transparent and there is no basis for arriving at such calculation. To strengthen the said submissions here in this case, no material has brought to our notice. 4. At the time of hearing, the Liquidator was directed to submit the valuation reports of the two Valuers who were appointed by him as per Regulation 35 of IBBI (Liquidation Process) Regulation 2016. As per Regulation 35 (1) of IBBI (Liquidation Process) Regulation 2016, the Liquidator shall appoint two registered valuers to evaluate the assets as required under Regulation 34. One Mr. Sudip Kumar Sarkar, Chartered Engineer by Profession who is a Government and IBBI Registered Valuer, and another firm Elmahast India Engineering and Management Consultant, Central Government approved valuer and Surveyors, are the two valuers who filed the valuation reports. 5. Both of them have considered the assets of the corporate debtor under valuation and the Valuer Mr. Sudip Kumar Sarkar assessed the value of the assets in questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s real estate website and arrived at the market rate adopting well known parameters without any cloud surrounding valuation. It is upon the said reasons I find no merits in the submissions of the Ld. Counsel/ applicants as to the valuation of the assets of the corporate debtor. The valuations were seen done in accordance with the provisions of the Code and the Regulations. 9. One more point urged by the Ld. Counsel/Applicants is that the liquidator reduced the reserve price beyond permissible limit and therefore the sale proceeding is irregular and in violation of the Regulations. To substantiate the said contention also here in this case, no data or evidence has been made available on the side of the applicants. 10. The Ld. Liquidator has filed the progress reports as per the provisions of the Code and submitted a list of dates as to the process flow for sale of the disputed assets the Nicco House. It has come out in evidence that he has issued public announcements as per the Regulation 12 in various leading English and vernacular language news papers. According to him, he issued altogether 7 publications in multiple newspapers like, Economic Times, Times of India, Business Stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Liquidator for enabling him to get buyers of the assets of the corporate debtor. Argued by the Ld. Sr. Counsel for the liquidator. The steps taken by reducing the upset price, from the available evidence is found legal and proper and in accordance with the power hold by the liquidator as per regulation 33 and 34. As per Schedule I (1) (4) a liquidator if failed in his attempt to obtain bidders for the price he notified in the EOI and auction fails, he can reduce the reserve price up to 75% of such value to conduct the subsequent auction. So reduction of reserve price is with in his power and he needs not to get any prior permission from the Adjudicating Authority for reduction. So the points urged in regards to reduction of reserve price is also found devoid of any merits. 15.At this juncture the Ld. Sr. Counsel for the liquidator attempted to brought our attention to a letter addressed to the Liquidator by the applicant in IA No.604/2019 dated 5/11/2018. it is a letter requesting the liquidator not to proceed with the sale of 4th 5th 6th and 7th floor alleging the said floors were constructed unauthorisedly without any building plan. The applicant is admittedly a tenant occu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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