Prateek Gupta and Ors vs Petrolube India Ltd

Heard learned counsel for the Appellant and learned counsel appearing of the Respondent. This Appeal has been filed against the order dated 25.11.2020 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Court-III by which the I.A. No. 2431/2020 has been decided. The I.A. was filed by the Liquidator seeking permission to conduct private sale of some of the assets of the Corporate Debtor comprising of the Storage Tanks having liquidation value of Rs.16,19,728/- which were lying at Petrolube India Limited, Nangloi, Delhi and Furniture Fixtures. The Adjudicating Authority considered the Application and granted the permission as sought by the Liquidator to conduct private sale of the assets. Aggrieved by the said order, the Appellant- Ex Director of the Corporate Debtor has come up in this Appeal.

Shri Kunal Tandon, learned counsel appearing for the Appellant submits that five storage tanks belong to the landlords/owner of the land and did not belong to the Corporate Debtor. It is submitted that only 60 plastic Storage Tanks belong to the Corporate Debtor with regard to which there is no dispute. It is submitted that the steel storage tanks which are fixed in the land were also part of the land and they belong to the owner of the land i.e. the Promoter. Hence, the Adjudicating Authority has committed error in passing the impugned order granting permission. It is also submitted that no opportunity was granted to the Appellant before passing such order.

Learned counsel for the Respondent refuting submissions of the learned counsel for the Appellant submits that when the Rent Agreement of the land was executed there was no mention of these five steel storage tanks in the agreement and only land was let out. It is submitted that steel storage tanks belong to the Corporate Debtor and hence they are to be sold in the liquidation process and permission for private sale was sought for which includes these five steel storage tanks. It is submitted that when e-auction notice was issued on 10.02.2020 and 08.03.2020, five steel storage tanks were very well included in it and no proceedings were undertaken by the Appellant at that stage

We have considered submissions of learned counsel for the parties and perused the record.

The Rent Agreement executed between the parties has been filed at Annexure-5, which indicate that Lessor is the owner of the property 19/3, Ram Nagar Colony, Kamruddin Nagar, Nangloi, Delhi which was decided to be let out to the second party on the monthly rent of Rs.30,000/- per month for a period of 12 months. In the Rent Agreement there was no mention of five steel storage tanks which is now sought to be claimed by the Appellant. The Rent Agreement clearly indicates rent was only for the land i.e. 500 sq yards, which is share of the Lessor. The steel tanks were part of the liquidation estate, hence when e-auction notice was issued on 10.02.2020 and 08.03.2020, the said storage tanks were specifically included in the e-auction notice. Request for private sale of the assets was sought by the Liquidator which permission was granted by the Adjudicating Authority. There is no material on the record to support the submission of learned counsel for the Appellant that five steel storage tanks did not belong to the Corporate Debtor and they belong to the promoter i.e. the Appellant. We note that at the time of passing of the order, the counsel for the Appellant had appeared before the Adjudicating Authority raised objection on behalf of the Ex-Management which have also taken into consideration. We find no error in the order of the Adjudicating Authority allowing I.A. No. 2431/2020. There is no merit in the Appeal. The Appeal is dismissed.