9911796707
TMI Blog2021 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... dator to proceed with the liquidation of the Corporate Debtor in accordance with the Liquidation Order. b) In the event prayers (a) is granted this Hon'ble Tribunal be pleased to: i) Allow the exclusion of period of 367 days during which the Liquidator could not proceed with the liquidation process as mentioned in the aforesaid paragraphs 38 to 41 of the application c) For such other orders as this Hon'ble Tribunal deems fit and proper in the facts and circumstances of the case FACTS OF THE CASE: - 2. It is averred in the application that the Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 05.01.2018 and appointed Mr. Ravi Sankar Devarakonda as the Interim Resolution Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... third party encumbrance on the same, without prior approval of this Appellate Tribunal. However, it will be open to the liquidator to proceed in accordance with decision of this Appellate Tribunal in 'S.C. Sekaran vs. Amit Gupta & Others' decided on 29.01.2019". 6. In the said case of S.C. Sekaran vs. Amit Gupta & Ors.(Order dated January 29, 2019 in Company Appeal (AT) (Insolvency) No. 495 & 496 of 2018), the Hon'ble NCLAT held that: "8. In view of the provision of Section 230 and the decision of the Hon'ble Supreme Court in Meghal Homes Pvt. Ltd' and 'Swiss Ribbons Pvt. Ltd.', we direct the 'Liquidator' to proceed in accordance with law ..... Before taking steps to sell the assets of the 'corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Debtor' from its management and from a death by liquidation. Thus, the steps which are required to be taken are as follows: i. By compromise or arrangement with the creditors, or class of creditors or members or class of members in terms of Section 230 of the Companies Act, 2013. ii. On failure, the liquidator is required to take step to sell the business of the 'Corporate Debtor' as a going concern in its totality along with the employees." As per the above order (Annexure A-2), Liquidator will sell the Corporate Debtor as a going concern in its totality wherein the scheme under Section 230 of the Companies Act, 2013 does not go through. 9. On May 10, 2019, MEPL submitted its proposal, to be considered as a sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly extended the timeline for submission of BOI up to 30.07.2019. 14. The Liquidator received EOIs from 6 (Six) prospective Applicants, thereafter within a week 4 (four) prospective applicants has submitted that their Scheme. All the prospective applicants, sought extension of time for submission of Scheme by 4-6 weeks to enable completion of due diligence on the Corporate Debtor. With the view to get as many schemes as possible from prospective applicants, to arrive at the best proposal available for the Corporate Debtor, the Liquidator granted the final extension for submission of Scheme up to 30.08.2019. 15. However, upon the voting by secured creditors, the resolution with respect of the Scheme submitted by MEPL, in terms of the Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order(s) of liquidation dated 06.12.2018. Hence, we have no option left but to permit applicant to proceeds with the liquidation as per the Order of Adjudicating Authority dated 06.12.2018 and 03.01.2019. 20. Therefore, the liquidator shall proceed with the liquidation process of the Corporate Debtor as per order dated 06.12.2018 and 03.01.2019, in accordance with rules and in terms of Regulation of the IBBI (Liquidation Process) Regulations, 2016. In respect of the 2nd prayer for Exclusion of time spent in the scheme process":- 21. Regulation 44(1) of the Liquidation Process Regulations prescribes a period of one year for the completion of liquidator process, computed from the liquidation commencement date. If a liquidator is un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from the liquidation commencement date, for the completion of the process. As Regulation 2B was introduced pursuant to the Amendment Regulations, its provisions are admittedly inapplicable to the present case. The Liquidator seeks that this Tribunal allows the exclusion of time period, as the Liquidator was unable to proceed with the liquidation process for more than one year owing to the appeal filed by MEPL before the Hon'ble NCLAT and the Scheme Process being underway. As the delay came about despite best efforts of the Liquidator, discharging his duties to maximize value for the stakeholders by obtaining a Scheme, the Liquidator prays that this Tribunal be pleased to allow the exclusion of this period in the interest of justice a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
