RMY Industries LLP vs Apple Industries Pvt. Ltd

This Appeal has been filed against order dated 25.04.2023 by which order Adjudicating Authority while considering I.A. No. 5620 of 2022 filed by the Successful Bidder for reliefs and concessions has issued notice to the Income-Tax Department, GST, VAT, Central Excise, Custom, DGGSTI and all other parties qua whose claims, the concessions are sought by the Appellant. The Adjudicating Authority has fixed the on 25.04.2023 for considering the matter.

Learned counsel for the Appellant submits that order for issuance of notice was not in accordance with law. The claimants whose claims were extinguished, those claimants need not be issued notice again. Learned counsel for the Liquidator also support the submission of the Appellant. Learned counsel for the Appellant has also relied of judgment of this Tribunal in Company Appeal (AT) (Ins.) No. 258 of 2023 passed by this Tribunal, where this Tribunal in Para 12 has made following observations:

“12. We while granting such liberty to the Appellant observe that law is well settled, a successful bidder who is declared as successful bidder of sale as going concern can seek access of the Adjudicating Authority and may pray for necessary directions in accord with and in consonance with the process document in the liquidation proceedings. In result, we partly allow this Appeal and hold that applicant’s prayers i.e. relief/ concessions/ directions needs consideration by the Adjudicating Authority for which we grant liberty to the Applicant to make a fresh Application containing prayers which may be commensurate and in accord with terms and conditions of the process document of e-auction process document. The Appellant may submit a fresh application praying for reliefs, concessions and directions which may be considered and decided by the Adjudicating Authority in accordance with law. The Appeal is disposed of, accordingly.”

We have considered the submissions of the Appellant and perused the record.

The judgment which has been relied by the Appellant, as noted above, was a judgment where liberty was granted to the Successful Bidder to file application before the Adjudicating Authority to make a fresh Application containing prayers which may be commensurate and in accord with terms and conditions of the process document of e-auction process document. The said judgment cannot be read to mean that the Adjudicating Authority is denuded of its jurisdiction to issue notice if it feels it appropriate to hear parties before grating reliefs and concessions as prayed by the Applicant.

We, at this stage, are not inclined to enter into the merits of the Appeal since the Adjudicating Authority has only issued notice. It is submitted that the matter is now listed on 10.08.2023. We, thus, are of the view that this is not an appropriate stage to entertain this Appeal. It is open for the Appellant to raise all his submissions before the Adjudicating Authority. With these observations, the Appeal is dismissed.