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Judgment
06.08.2024: Heard Mr. Arun Kathpalia, Ld. Sr. Counsel appearing for the Appellant, Mr. Ramji Srinivasan, Ld. Sr. Counsel appearing for liquidator and Mr. Malak Bhatt, Ld. Counsel appearing for Successful Bidder.
This appeal has been filed against an order dated 22.04.2024 passed in IA No. 1(AHM) 2024 which was filed by the Appellant praying for prayers as quoted in para-1 of the order.
“a. Set aside the E-Auction Sale Notice dated 08.03.2023 published by the Liquidator for sale of the Corporate Debtor as a “going concern” scheduled on 04.04.2024;
b. direct the Liquidator to allow the Applicant to realize the secured Assets as per Section 52(3) of the Code and other related provisions of the Liquidation Regulations;
c. extend the time period to pay to the Liquidator the costs as more particularly mentioned in Regulation 21(A) of the Liquidation Regulations;
d. pending the hearing and final disposal of the present Application, this Hon’ble Tribunal be pleased to stay the sale of the Secured Assets as mentioned in the E-Auction Sale Notice as per Regulation 32(e) of the Liquidation Regulations; and
e. pass such other orders as this Hon’ble Tribunal deem fit”.
This appeal was taken for consideration on 21.05.2024 following order was passed:-
“This appeal is filed against the order dated 22.4.2024 by which IA No. A/1(AHM)2024 filed by the appellant, challenging the e-auction sale notice dated 08.03.2023 has been dismissed. Ld. Counsel for the Liquidator submits that sale has already been conducted today. However, he submits that in view of the para-20 of the order the Adjudicating Authority he is already restrained from issuing the sale certificate and distribute the proceeds realised by way of going concern sale.
Issue Notice. Let Reply be filed within two weeks. Rejoinder, if any, may be filed within two weeks, thereafter.
List this appeal on 10.07.2024.
In view of the directions issued by Adjudicating Authority in paragraph-20 no further orders are required”.
and therefore again the following order was passed on 05.07.2024.
Learned Counsel for the Appellant submits that in the Appeal, an order was passed by this Tribunal on 21.05.2024 where the statement of Liquidator was recorded that the Adjudicating Authority by the impugned order at paragraph 20 has already restrained the Liquidator from issuing the sale certificate. Noticing the aforesaid, this Tribunal was of the view that in view of paragraph 20, no further orders are required and the next date fixed in the Appeal is 10.07.2024.
2.Now an application has been filed by the Liquidator before the Adjudicating Authority on which 08.07.2024 has been fixed.
3.Counsel for the Appellant apprehend that since Appeal is yet to be listed on 10.07.2024 for further orders and Adjudicating Authority has fixed the application on 08.07.2024 noticing the fact that appeal is listed on 10.07.2024.
4.In above view of the matter, we are of the view that the Adjudicating Authority may adjourn the application on any date after 10.07.2024.
5.List the Appeal on 10.07.2024.
When the appeal came for consideration. Ld. Counsel for the liquidator has submitted that an IA No. 965/2024 has been filed by the liquidator in Miscellaneous Application No. 1/2024 where it is proposed that amount be paid to appellant Rs. 39,30,54,422/- out of the admitted claim of Rs. 39,55,34,828/- entire amount admitted of HDFC Finance Ltd. The said amount is being disbursed out of the total amount received from the bid i.e. Rs. 78 Crores.
The application which has been filed by the liquidator before the Adjudicating Authority relevant paragraph 3, 9 and 10 of Annexure-A to the application are as follows:
“3.Sale of Assets of IMP Powers Ltd. has been concluded as sell of the corporate debtor as a going concern per sub-regulation (e) of Regulation 32 of IBBI (Liquidation Process) Regulations, 2016, for Rs. 78,00,00,000/-.
9.Summary of the admitted claims, bifurcated into Term Loan and Working Capital Loans:
Name of the Claimant Amount Admitted (A) + (B) Working Capital Loans (A) Term Loans (B) Karnataka Bank Rs. 48,87,14,731 Rs. 48,87,14,731 Rs.0 State Bank of India Rs. 1,79,59,34,344 Rs. 1,69,69,57,662 Rs. 9,89,76,682 IDBI Bank Rs. 46,34,46,278 Rs. 46,34,46,278 Rs. 0 Axis Bank Rs. 23,77,03,236 Rs. 23,77,03,236 Rs.0 Bank of India Rs. 76,41,31,810 Rs. 76,41,31,810 Rs.0 Indian Bank Rs. 57,20,87,032 Rs. 57,20,87,032 Rs.0 STCI Finance Ltd. Rs. 39,55,34,828 Rs. 0 Rs. 39,55,34,828 ICICI Bank Rs. 16,52,739 Rs. 16,52,739 Rs.0 Rs. 4,71,92,04,998 Rs. 4,22,46,93,488 Rs. 49,45,11,510 10.Taking the average valuation of fixed assets (Land, Building, Plant and Machineries) from the reports of the Registered Valuers, Rs. 49,14,10,420/- out of the liquidation proceeds may be utilised towards payment to secured lenders having security interest over the fixed assets, i.e. term loan lenders.
Name of the Claimant Term Loans As per Valuation of Fixed Assets Karnataka Bank Rs.0 Rs.0 State Bank of India Rs. 9,89,76,682 Rs. 9,83,55,998 IDBI Bank Rs.0 Rs.0 Axis Bank Rs.0 Rs.0 Bank of India Rs.0 Rs.0 Indian Bank Rs.0 Rs.0 STCI Finance Ltd. Rs. 39,55,34,828 Rs.39,30,54,422 ICICI Bank Rs.0 Rs.0 Rs.49,45,11,510 Rs.49,14,10,420
In view of the stand now taken by the liquidator by filing an affidavit before the Adjudicating Authority, we are of the view that there is no necessity of considering any issue which has arisen in this appeal. The appellant having been offered to pay the amount of Rs. 39,30,54,422/-. We see no reason to keep the appeal pending. The appeal is disposed of. We make it clear that we have not entered into any issue on merits.
In view of the amount having been deposited by the Successful Bidder and the amount which has to be distributed already been crystallized, we are of the view that Adjudicating Authority may consider the issuing of direction for issuance of sale certificate.