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TMI Blog2024 (9) TMI 1322X X X X Extracts X X X X X X X X Extracts X X X X ..... ther person relating to the period prior to the date of CIRP. We do not find any illegality in the above relief granted to the Appellant prior to the date of CIRP. Insofar as claims of known or unknown, disclosed or undisclosed liabilities, the obligation is up to the cut-off date, i.e. date of commencement of liquidation. The e-auction Notice clearly mention that transactions prior to the cut-off date shall be dealt as per Section 53 of the IBC. Thus, all claims known or unknown on the date of liquidation commencement date has to be dealt as per Section 53. The prayer of the Appellant in this Appeal is to grant reliefs and concessions for all claims and liabilities up to the date of sale by e-auction i.e. 30.03.2023. When the eauction Notice itself does not contemplate grant of any relief from claims and liabilities up to the date of e-auction sale, the Appellant cannot be granted reliefs and concessions, which is not contemplated by e-auction Notice itself. Regulations 12 and 16 contemplate filing of a claim as on the liquidation commencement date. There can be no question of extinguishment of claim up to the date of sale of e-auction of the Corporate Debtor as going concern . Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2022 became the liquidation commencement date. (iii) Pursuant to the liquidation order, Liquidator made public announcement. The List of stakeholders of the Corporate Debtor was prepared. The Liquidator conducted total of 7 e-auctions in accordance with Regulation 33 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. (hereinafter referred to Liquidation Regulations ) for sale of assets of the Corporate Debtor. The Corporate Debtor was specifically sold as a going concern during 7th e-auction held on 30.03.2023. (iv) The Appellant became successful bidder and under orders of the Adjudicating Authority granted extension for depositing the entire bid amount. Sale Certificate dated 14.09.2023 was issued by the Liquidator to the Appellant. (v) IA No.610 of 2024 was filed by the Appellant praying for taking on record the completion of the Sale Process of the Corporate Debtor. One of the reliefs prayed in the Application was for granting reliefs and concessions sought under para 15 of the Application. The Application IA No.610 of 2024 was heard by the Adjudicating Authority and by order dated 18.06.2024, IA 610 of 2024 was disposed of by the Adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the terms and conditions as per the eauction Notice and Process Document. The Adjudicating Authority has granted all necessary reliefs and concessions to which the Appellant was entitled, which is clear from paragraph 13 of the judgment and the Adjudicating Authority has rightly given liberty to the Appellant to approach the appropriate and concerned authority to seek the relevant reliefs and concessions as may be available to the Applicant. 6. We have considered the submissions of learned Counsel for the parties and have perused the records. 7. The question of law which arises in the present Appeal as formulated by the Appellant in paragraph 8(b), are as follows: (i). Whether the clean slate principle extends only to liabilities prior to the insolvency commencement date or will extend to the date of actual sale of the Corporate Debtor as a going concern ? (ii) Whether the Adjudicating Authority can refuse to grant necessary reliefs and concessions without even considering them and without assigning any reasons? 8. In the Appeal, the Appellant has prayed for following reliefs: a. That this Hon'ble Tribunal be pleased to modify the order dated the 18th of June, 2024 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f actual sale in favour of the Appellant, i.e. up to 30.03.2023. The Appellant has filed copy of Certificate of Sale as Annexure-A3 along with which terms and conditions of auction sale has also been annexed as Annexure-1. Clause 5 of terms and conditions provides as follows: 5. Successful Auction Bidder has been provided with Corporate Debtor as going concern strictly on as is where is as is what is basis and is subject to approval of Hon'ble NCLT, Mumbai Bench. The information in respect of the Asset has been stated to the best of the knowledge of the Liquidator, however, he shall not be responsible for any inadvertent error, or omission in the said particulars. It should be noted that the Liquidator does not make any representation as to the correctness, validity or adequacy or otherwise of any ownership of asset or the Company Appeal (AT) (Insolvency) No.1520 of 2024 8 conditions of the asset or its quality for any specific purpose or use. 11. Schedule-1, which deals with Block-A contains the following note: Note: All known or unknown, claimed or unclaimed, disclosed or undisclosed liabilities/obligations risk as on the cut-off date( i.e. date of commencement of liquidation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals with Public announcement by liquidator . Regulation 12, subregulation (2) (a) call upon stakeholders to submit their claims or update their claims submitted during the CIRP, as on the date of liquidation commencement date. Regulation 12, sub-regulations (1) and (2) provides follows: 12. Public announcement by liquidator. (1) The liquidator shall make a public announcement in Form B of Schedule II within five days from his appointment. (2) The public announcement shall- (a) call upon stakeholders to submit their claims or update their claims submitted during the corporate insolvency resolution process, as on the liquidation commencement date; and (b) provide the last date for submission or updation of claims, which shall be thirty days from the liquidation commencement date. 14. Further, Regulation 16 provides for Submission of claim , which is as follows: 16. Submission of claim. (1) A person, who claims to be a stakeholder, shall submit its claim, or update its claim submitted during the corporate insolvency resolution process, including interest, if any, on or before the last date mentioned in the public announcement. (2) A person shall prove its claim for debt or dues to hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. However, the Applicant may in accordance with applicable law and procedure, approach the appropriate and concerned authority to seek the relevant reliefs and concessions as may be available to the Applicant. 18. Paragraph 14 of the order of the Adjudicating Authority is clarificatory in nature, which provided that any other relief and concession not mentioned in the table in paragraph 13, shall be deemed to have not been granted. The Adjudicating Authority has considered all relevant reliefs and concessions, which were part of the reliefs contained in paragraph-15 of the Application IA 610 of 2024 and all relevant reliefs and concessions were specifically dealt with. Hence, we do not find any error in paragraph 14 of the order of the Adjudicating Authority, where Adjudicating Authority has observed that any relief and concessions not mentioned in paragraph 13 shall be deemed to have not been granted. Further, in paragraph 15 itself, the Adjudicating Authority has observed that Applicant may in accordance with applicable law and procedure, approach the appropriate and concerned authority to seek the relevant reliefs and concessions as may be available to the Applicant. 19. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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