9911796707
TMI Blog2024 (9) TMI 1322X X X X Extracts X X X X X X X X Extracts X X X X ..... ") against the Corporate Debtor - Venus Rolling Mills Pvt. Ltd. commenced by order dated 22.04.2019 of the Adjudicating Authority and Mr. Devendra Singh was appointed as Interim Resolution Professional ("IRP"), who was subsequently confirmed as Resolution Professional ("RP"). (ii) Upon failure of the resolution of the Corporate Debtor, the Committee of Creditors ("CoC") unanimously resolved to liquidate the Corporate Debtor. An order dated 09.06.2022 was passed by the Adjudicating Authority directing for liquidation of the Corporate Debtor. The liquidation order having been passed on 09.06.2022, 09.06.2022 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 succe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The learned Counsel appearing for the Respondent refuting the submissions of learned Counsel for the Appellant submits that the Appellant was a successful bidder and has purchased the assets of Corporate Debtor as 'going concern' on "as is where is & as is what is" basis and the reliefs and concessions to which the Appellant was entitled have already been granted by the Adjudicating Authority by the impugned order. The 'clean slate' theory as contended by the Appellant is applicable in reference to a Resolution Plan and does not apply to e-auction in the liquidation proceedings. The e-auction in the liquidation proceedings is held 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt before the Acquisition Date. May apply to appropriate authorities of respective department based on this Order. 9. A direction for waiver of any past liabilities in relation to any electricity dues of the Corporate Debtor to any State Government or Central Government Department before the Acquisition Date. May apply to appropriate authorities of respective department based on this Order." 10. With regard to relief granted at Item No.6 of paragraph 13 of the order, the Appellant submission is that the Adjudicating Authority committed error in granting relief only for the period prior to the date of CIRP. Further, the relief ought to have been granted up to the date of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice 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. 13. The IBBI (Liquidation Process) Regulations, 2016, Regulation 12, which deals 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Corporate Debtor or any past liabilities in relation to any electricity dues of the Corporate Debtor. The Adjudicating Authority has rightly directed the Corporate Debtor to apply to appropriate authorities of respective department based on the order. Waiver of the liabilities with regard to dues of the Corporate Debtor to any State or Central Government or statutory Authorities, was to be dealt with as per Note extracted above and no exemption or waiver could have been granted as prayed by the Appellant. 17. The learned Counsel for the Appellant has also referred to paragraph 14 of the order, which is as follows: "14. Any other relief and concession not mentioned in the above table shall be deemed to have been not granted. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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