Hrishabh Pharma Pvt. Ltd vs Vijay P. Lulla, Liquidator & Anr

Heard learned counsel for the Appellant. This Appeal has been filed against the order dated 11.05.2022 passed in I.A. No. 2557/2021 filed by the Appellant. Appellant herein is a Successful Bidder in a liquidation proceeding of the Corporate Debtor. ‘Vidhya Pharmachem Pvt. Ltd.’ (Corporate Debtor) was sold as a going concern in an auction in which the Appellant emerged as Successful Bidder, whose bid was approved. Subsequent to the aforesaid approval, an I.A. No. 2557/2021 was filed by the Appellant before the Adjudicating Authority for as many as 20 reliefs which came to be rejected by the Adjudicating Authority. The Adjudicating Authority, however, while rejecting the Application noticed that the Applicant (Appellant herein) is the Successful Purchaser who purchased the Corporate Debtor as going concern. Adjudicating Authority further observed that the Appellant is also entitled to reliefs as a Successful Purchaser under the Code. However, the application was rejected by the Adjudicating Authority. Appellant aggrieved by the impugned order has come up in this Appeal.

Learned  counsel  for  the  Appellant  submits  that  although  the Appellant’s case that he is a Successful Purchaser of a going concern is not disputed even in the impugned order but in view of the rejection of the application, Appellant is likely to face several difficulties when he would apply for several permissions and concessions etc. under the statutory requirements.

We are of the view that the Appellant, who is a Successful Purchaser of a going concern is entitle to run as a going concern and take all necessary steps as are required for running it as going concern. We, however, are of the view that the Adjudicating Authority did not commit any error in rejecting the application but the rejection shall not come in the way of the Appellant when he takes steps for running the Corporate Debtor as a going concern by seeking for permissions and approval, etc. from the statutory authorities in accordance with law. With these observations, the Appeal is disposed of.