Indian Bank vs Kadevi Industries Ltd

It is submitted that CP (IB) No.10/7/HDB/2017^{11.Copy of order initiating CIRP (Document No.1 at Page Nos.12-17)} was filed under Section 7 of IBC by the Indian Bank (Financial Creditor) against the Company under Liquidation, which was admitted by this Tribunal on 15.03.2017 and IRP was appointed.

It is submitted that after appointment of IRP, the Company went into Liquidation and Mr.G.S.N. Murthy^{22.Copy of order commencing Liquidation (Document No.2 at Page Nos.18-30)} was appointed as the liquidator by this Tribunal. The liquidator expired during the liquidation process and CS Dr. Ahalada Rao Vummenthala^{33.Copy of order appointing present Liquidator (Document No.3 at Page No.31)} was appointed as the liquidator on 31.03.2022.

The Liquidator on his appointment submitted the progress reports^{44.List of progress reports (Document No.4 at Page No.32)} to this Tribunal from time to time as per the provisions of IB Code and Regulations.

It is submitted that the CD was having fixed and current assets at Ankireddypally and Kushaiguda. The same were charged to the secured creditor i.e., Indian Bank, which did not relinquish its security interest^{55.Copy of the Indian Bank's letter about relinquishment of security interest (Document No.5 at Page No.33)} on Fixed Assets in favour of the liquidation estate.

It is submitted that the erstwhile liquidator brought the properties for sale by issuing sale notices^{66.Copy of the sale notices (Document Nos.6 at Page Nos.34-36)} on 21.10.2021 & 23.03.2023. However, the sale did not materialize due to the interim stay granted by this Tribunal in IA 566/2021. This application was disposed of and interim stay was vacated vide orders dated 01.08.2022^{77.Copy of order in IA No.566/2021 (Document No.7 at Page No.37)} of this Tribunal.

It is submitted that after disposal of IA 566/2021, the applicant held discussions with the secured creditors and it was decided that the fixed and current assets can be sold together since the current assets were also situated in the same places and also assuming the proposed bidders were likely to purchase both fixed and current assets hoping to get maximum value if both are sold together. In these circumstances, the Liquidator filed an IA 1216/2022 seeking to direct the Indian Bank to take steps for sale of the properties, which was allowed by this Tribunal on 08.12.2022^{88.Copy of order dt.08.12.2022 in IA No.1216 of 2022 (Document No.8 at Page Nos.38-43)}. The orders/directions issued by this Tribunal is reproduced below:

It is submitted that the Indian Bank sold the property situated at Akkireddypalem along with the current assets for a sum of Rs.28.22 crores including Rs.52 lakhs towards interest for the delayed payment. The Indian Bank paid a sum of Rs.3.60 crores to the liquidation account. However, the property situated at Kushaiguda^{99.Copy of sale notices issued by Indian Bank for Kushaiguda (Document No.10 (Colly) at Page Nos.50-54)} could not be sold even after the bank issuing sale notices three times. The Indian Bank issued sale certificate^{1010.Copy of sale certificate issued by Indian Bank (Document No.9 at Page Nos.44-49)} to the purchaser of the Akkireddypalem property.

It is submitted that the erstwhile liquidator filed an application for recovery of the amounts relating to the fraudulent transactions etc., whose names were reflected in the list of receivables available in the records of the erstwhile liquidator. All the applications were disposed of^{1111.List of the applications filed and disposed for receivables (Document No.11 at Page Nos.55-56)} except one application i.e., IA 1857/2024 which is filed against KPTCL. The lead Financial Creditor, Indian Bank, has agreed to pursue the pending legal proceedings even after the closure of the Liquidation Process, and to distribute any subsequent realizations among the stakeholders in accordance with Section 53 of the Insolvency and Bankruptcy Code 2016.

It is submitted that the Liquidator distributed the amounts^{1212.List of distributions made by the Liquidator (Document No.12 at Page Nos.59-65)} as per the provision 53 of IB Code.

It is submitted that this Tribunal at the request of the Applicant extended the period of liquidation from time to time and finally this Tribunal extended the period of liquidation upto 15.10.2025 vide orders dated 14.08.2025 in IA 1375/2025^{1313.Copy of order dated 14.08.2025 in 1375 of 2025 (Document No.13 at Page No.66)}.

It is submitted that the Liquidator prepared and submitting the Final Report^{1414.Final Report (Document No.14 at Page Nos.67-78)} and Form-H Compliance certificate^{1515.Form-H Compliance Certificate (Document No.15 at Page Nos.79-85)} which include assets sale report, distribution of realizations, details of preliminary and progress reports submitted, number of FCC Meetings conducted etc., as required under Regulation 45 of IBBI (Liquidation Process) Regulations, 2016.

It is submitted that the erstwhile liquidator and the applicant completed the audit of Receipts & Payments Account of the Corporate Debtor for the financial years from 2018-19 to 2024-25 and filed the returns with RoC, Hyderabad in respect of these years.

It is submitted that the bank account by the liquidator with Indian Bank, Himayathnagar Branch, Hyderabad will be closed by transferring the funds to Indian Bank, Koti Branch as a custodian immediately after obtaining the discharge and dissolution order from this Tribunal. Alternatively, the Liquidation Bank Account will be handed over to the custodian of unsold assets by changing the title and signatories as deemed fit.

As a sequel to the above, the present Application is filed before this Authority to seek orders for dissolution of the Corporate Debtor Company and to permit the liquidator to close the liquidation process and discharge the applicant as a Liquidator from the liquidation process of the CD.

The Applicant declares that the matter regarding this Application/Petition is not pending before any Tribunal of law or any other authority.