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Judgment
This I.A.No.99/2021 is filed under Section 54 (1) of Insolvency and Bankruptcy Code, 2016 and Regulation 45(3)(b) of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Following the orders of the NCLT, Amaravati Bench dated 27.08.2019, the paper publication was made by the Liquidator on 31.08.2019 inviting claims from various stakeholders. In response to the said paper publication the claims as follows were received:
LIST OF CREDITORS SUBMITTED CLAIMS AS ON 18.09.2021
FORM D:
| S. No | Name of the Claimant | Date of receipt of Claim | Claim Amount (INR) | Amount Admitted based on ledger balances of Liners (INR) |
|---|---|---|---|---|
| SECURED CREDITORS | ||||
| 1 | Andhra Bank | 12-09-2019 | 189777518 | 189777518 |
| 2 | IDBI Bank Ltd | 25-09-2019 | 85820490 | 85820490 |
| Total | 275598008 | 275598008 | ||
| UNSECURED CREDITORS | ||||
| 3 | T G Saroja | 16-09-2019 | 1095266 | 1086625 |
| 4 | Grandhi Baby Kamala | 13-09-2019 | 547633 | 543313 |
| 5 | Urvasi Theatres Private Limited | 13-09-2019 | 7137700 | 6994500 |
| 6 | Radhika Sarma K.S. | 31-08-2019 | 1091667 | 1090750 |
| 7 | Sujatha Venkatesan | 11-09-2019 | 1082503 | 1082503 |
| 8 | Elizabeth Renuka Martin | 10-09-2019 | 6000000 | 5453750 |
| 9 | Malathi Raghavan | 31-08-2019 | 1091667 | 1090750 |
| 10 | Jaishree Krishnan Maniketh | 31-08-2019 | 545833 | 545375 |
| 11 | Jaimala Arvind Rao | 31-08-2019 | 655000 | 654450 |
| 12 | Sreelakshmi Jitender | 31-08-2019 | 327500 | 327225 |
| 13 | Kusalava International Limited | 12-09-2019 | 10333333 | 10333333 |
| Total | 29908102 | 29202574 | ||
| FINANCIAL CREDITORS- RELATED PARTIES | ||||
| 14 | Chidambaram V S | 31-08-2019 | 545833 | 545375 |
| 15 | Amita Ganesh | 31-08-2019 | 23470833 | 23470833 |
| 16 | S. Ganesh | 31-08-2019 | 19650000 | 18324600 |
| 17 | Aarti Industries | 31-08-2019 | 13318333 | 13318333 |
| 18 | S.S.Mani | 31-08-2019 | 1310000 | 1308900 |
| 19 | Vivek Sahasranaman | 31-08-2019 | 2183333 | 2181500 |
| 20 | Balaji S | 31-08-2019 | 1855833 | 1854275 |
| 21 | Rajeswari Balaji | 31-08-2019 | 4366667 | 4363000 |
| 22 | Sharadha Guru | 31-08-2019 | 1091667 | 1090750 |
| 23 | Guru S | 31-08-2019 | 9524792 | 9499792 |
| 24 | Shruti Balaji | 31-08-2019 | 1310000 | 1308900 |
| 25 | Archana Balaji | 31-08-2019 | 1310000 | 1308900 |
| 26 | Jai and Sons Pvt Ltd | 31-08-2019 | 16263243 | 16249587 |
| 27 | Uma Krishnamurthy | 31-08-2019 | 8187500 | 8180625 |
| Total | 104388034 | 103005370 | ||
| Secured Financial Creditors | 275598008 | 275598008 | ||
| Unsecured Financial creditors | 134296136 | 132207944 | ||
| (29908102+104388034)(29202574+103005370) | ||||
| Grand Total | 409894144 | 407805952 |
Details of securities held with M/s Andhra Bank (in pari passu charge with M/s IDBI Bank Ltd)
| S.No. | DESCRIPTION OF PROPERTY |
|---|---|
| 1. | Equitable mortgage of Company land admeasuring Ac. 1.48 cents situated in R S No. 205/2A, Kanuru, Near 7th cross road, Jawahar Autonagar, Vijayawada and super structures thereon |
| 2. | Equitable mortgage of Company land admeasuring 14637.05 sq.yds bearing Plot Nos. 55 to 66 situated at Industrial Park, Tirumalagiri (v), Jaggayapet, Krishna and super structures thereon |
| 3. | Equitable Mortgage of Company land admeasuring 2.427 hectares (24270 sq. Meters / Ac 6.00) bearing Khasra No. 201/5 and 210/1 located in village Vikrampur, Tahsil Bazpur, District Udam Singh Nagar in Uttarakhand State and super structures thereon |
| 4. | Value of other fixed assets of the company like plant and machinery, furniture and fixtures, equipment, vehicles as on 27.08.2019 |
Details of Un encumbered security details:
| S. No. | DESCRIPTION OF PROPERTY |
|---|---|
| 1. | Office space bearing no.6 on the fifth floor of the multi-storeyed building "Varun Towers" at Municipal Door No. 1-10-177 and 177/A, Begum pet, Hyderabad -16 admeasuring 588 Sq.ft. equivalent to 54.63 Sq.mtrs. |
LIST OF OPERATIONAL CREDITORS AS ON 18.09.2021 FORM – C
| S.No | Name of the Claimant | Date of Claim | Amount of Claim submitted (INR) | Amount of Claim admitted (INR) |
|---|---|---|---|---|
| 1 | B and B Specialities | 20-09-2019 | 40996 | 40996 |
| 2 | Ivory Auto & Engineering | 25-09-2019 | 601229 | 601229 |
| 3 | Agni Insulations Pvt Ltd | 23-09-2019 | 660033 | 660033 |
| 4 | New Chieftain Agencies | 23-09-2019 | 279144 | 279144 |
| 5 | Sri Venkatasai Engineering Works | 22-09-2019 | 49839 | 44840 |
| 6 | Manideep Agencies | 24-09-2019 | 107683 | 107683 |
| 7 | Gayathri engineering Works | 25-09-2019 | 2676948 | 2377736 |
| 8 | JVMETALS & ALLOYS (2) | 31-08-2019 | 7878137 | 7878137 |
| 9 | EC & Associates Charted Accountants | 26-09-2019 | 801766 | 801766 |
| 10 | Sony Auto Engineers | 22-09-2019 | 669314 | 669314 |
| 11 | Sumati Sales Corporation | 21-09-2019 | 1145249 | 970550 |
| 12 | Elkem South Asia pvt Ltd | 21-09-2019 | 2914608 | 2914608 |
| 13 | Nutech packages | 23-09-2019 | 195503 | 195503 |
| 14 | Thermal papers pvt ltd | 21-09-2019 | 240419 | 240419 |
| 15 | Prashanth Enterprises | 20-09-2019 | 1165869 | 1153180 |
| 16 | Jay Bhavani Maa Eng & Foundry | 17-09-2019 | 2732889 | 2732889 |
| 17 | Ficus pax Private Limited | 13-09-2019 | 312795 | 312795 |
| 18 | Pragathi Machines | 25-09-2019 | 217535 | 205295 |
| 19 | Spandana printing works | 26-09-2019 | 244447 | 244447 |
| 20 | Aarti Industries (Related party) | 31-08-2019 | 4771108 | 4370481 |
| 21 | Mahalakshmi Electrical works | 27-09-2019 | 66559 | 66559 |
| 22 | Associated Road Carriers | 26-09-2019 | 325822 | 325822 |
| 23 | Schutz carbon Electrodes pvt ltd | 19-09-2019 | 424732 | 424732 |
| 24 | Lubesol India Pvt Ltd | 26-09-2019 | 1740566 | 1693551 |
| 25 | New friend Auto India | 17-09-2019 | 3469874 | 3469874 |
| 26 | Lakshmi turning works | 17-09-2019 | 163640 | 73659 |
| 27 | Castrol | 26-09-2019 | 910316 | 910316 |
| 28 | DYNAMIC MELT INDUSTRIES (1) | 07-09-2019 | 9227394 | 8803302 |
| 29 | Rolex Liners | 07-09-2019 | 5427940 | 5427940 |
| 30 | Vijayawada Alloy Castings | 02.01.2019 | 813299 | 813299 |
| 31 | Strategic Engineers | 27-09-2019 | 49835 | 49835 |
| 32 | Asia Metals | 25-09-2019 | 6564378 | 5904416 |
| 33 | SPECIALITY PACKAGING (3) | 23-09-2019 | 6435140 | 6435140 |
| 34 | Sailaja safe | 27-09-2019 | 4401972 | 4401972 |
| 35 | Snam Alloys Pvt ltd | 04.09.2021 | 2070804 | 1700380 |
| TOTAL | 69797782 | 67301842 |
CLAMS BY WORKERS AND EMPLOYEES: FORM E
| S.No | Name of the Claimant | Date of Claim | Amount of Claim submitted (INR) | Amount of Claim admitted (INR) |
|---|---|---|---|---|
| 1 | General Secretary , Liners India Ltd Workers Union | 26-09-2019 | 59432482 | 40174640 |
| 2 | Sri V Ravi Kumar for Employees | 24-09-2019 | 3784038 | 3784038 |
| Total | 63216520 | 43958678 |
CLAIMS BY GOVERNMENT
| S.No | Name of the Claimant | Date of Claim | Amount of Claim submitted (INR) | Amount of Claim admitted (INR) |
|---|---|---|---|---|
| 1 | ESIC | 11-09-2019 | 994905 | 994905 |
| 2 | COMMERCIAL TAX OFFICE | 21-09-2019 | 293558909 | 109278591 |
| 3 | APCPDCL,vijaya wada | 23.06.2021 | 5865787 | 5865787 |
| Total | 300419601 | 116139283 |
TOTAL CLAIMS
| Sl.No | Creditors | Amount of Claim submitted (INR) | Amount of Claim admitted (INR.) |
|---|---|---|---|
| 1 | Secured Financial Creditors | 275598008 | 275598008 |
| 2 | Unsecured Financial Creditors | 29908102 | 29202574 |
| 3 | Unsecured Financial Creditors - Related Parties | 104388034 | 103005370 |
| 4 | Operational Creditors | 69797782 | 67301842 |
| 5 | Claims in Form E- workers | 59432482 | 40174640 |
| 6 | Claims in Form E - employees | 3784038 | 3784038 |
| 7 | Government claims | 300419601 | 116139283 |
| TOTAL CLAIMS | 843328047 | 635290345 |
The 1st Stakeholders meeting was conducted on 06.11.2019 and all the stakeholders present consented for conducting sale as per Regulation 32 (e) i.e., “Corporate Debtor as going concern” with a Reserve Price of Rs.35.03 Crores and in case requirement of second publication with a Reserve Price of Rs.31.53 Crores. 1st Paper publication was made on 07.11.2019 and e-auction was conducted on 23.11.2019 and 2nd Paper publication was made on 23.11.2019 and e-auction was conducted on 23.12.2019 but no bids were received for both the publications.
The 2nd Stakeholders meeting was conducted on 23.12.2019 and all the stakeholders present unanimously consented to go for sale of the assets of the Corporate Debtor as per Regulation 32(a) and 32(d). Accordingly, the 3rd Publication was made on 25.12.2019 and e auction process was conducted on 09.01.2020. In the auction only one successful bid was received and sale was completed as per the following details:
| ASSET | RESERVE PRICE | NAME OF THE BIDDER |
|---|---|---|
| Company office space bearing Flat No.6 on the fifth floor of the multi - storeyed building “Varun Towers” at Municipal Door No.1-10-177 and 177/A, Begumpet, Hyderabad -500016 | 30 Lakhs Bid submitted for 41.50 Lakhs | Mr.Busetty Naga Phaneedra Registration Completed |
| admeasuring | 588 | ||
| Sq.Ft.equilant to | 54.63 | ||
| Sq.Mtrs. |
The 4th publication was made on 11.01.2020 and e-auction was conducted on 23.01.2020 for the remaining unsold properties and in the e-auction one successful bid was received and the sale was completed as follows:
| ASSET | RESERVE PRICE | NAME OF THE BIDDER |
|---|---|---|
| Company land admeasuring 5428 Sq.yards bearing Nos.61 to 66 situated at Industrial Park Tirumalagiri, Jaggayyapet, Krishna District, Andhra Pradesh | 120 Lakhs Bid submitted for 122 Lakhs | Mr.Rangapuram Raghavendra Mr.Rangapuram Venkata Manikanta & Mr.Rangapuram Abishek of M/s. Qualichem Registration Completed |
3rd Stakeholders consultative committee meeting was conducted on 18.02.2020 and 5th publication was made on 18.02.2020 and e-auction was conducted on 29.02.2020. But the liquidator did not get any successful bids for the remaining unsold properties and however a joint bid from 3 bidders was received for the sale of machinery including trade mark as per Regulation 33(2) (c) of Insolvency and Bankruptcy Board of India (Liquidation) Process Regulations, 2016. The following assets were sold at a higher price than the Reserve Price in the auction held on 29.02.2020.
| ASSET | RESERVE PRICE OF FAILED AUCTION | NAME OF THE BIDDER |
|---|---|---|
| Company plant and machinery, Furniture, Fixtures, Vehicles & Trademark | 460 Lakhs Quotation submitted for 461 Lakhs | M/s. Kushalava International Ltd & M/s. Sambasiva Industries & M/s. Sri Sai Steels |
6th Publication was made on 11.03.2020 and E-auction was conducted on 21.03.2020 for the remaining unsold properties, but no bids were received matching to the auction stipulations. The Liquidator could not conduct stakeholders meeting immediately after the auction on 21.03.2020 due to Covid lockdown. 4th Stakeholders meeting was conducted on 28.10.2020 and the 7th publication was made on 31.10.2020 and E-auction was conducted on 20.11.2020, but no bids were received. 5th Stakeholders meeting was conducted on 23.11.2020 and the 8th publication was made on 30.11.2020 and E-auction was conducted on 19.12.2020, but no bids were received.
6th Stakeholders meeting was conducted on 19.12.2020 and 9th publication was made on 20.12.2020 and E-auction was conducted on 05.01.2021 for the remaining unsold properties. Bids were received for all the remaining unsold properties and those properties were sold as per the following details:
| Sl No. | DESCRIPTION OF THE ASSET | RESERVE PRICE(Rs.) | BID Amount(Rs.) |
|---|---|---|---|
| 1 | Company land admeasuring Ac 1.48 cents situated in RS No.205/2A, Kanuru Near 7th Cross Road, Jawahar Auto Nagar, Vijayawada and super structures there on. Bounded by :: west - Road (proposed for expansion) East - Road South-plot belongs to S.S.Mani North-plot belongs to DVRKTC | Rs.16,00,00,000 | Rs.160,00,000/- M/s.Akshra Enterprises India Pvt Ltd is the single successful bidder for Rs.16,05,00,000/- later requested for completing the registration in two parts i.e. one part in their name and second part in their associate company name M/s.Emesco Books pvt ltd Registration completed on 8.09.2021 |
| 2 | Company land admeasuring 9209 Sq.Yards bearing Nos.55 to 60 situated at industrial park Tirumalagiri (v) Jaggayyapet , Krishna Dt. with 24000 sft ( | Rs.2,53,00,000/- | Rs.25,30,000/- EOI interested received post Auction Date as per Regulation 33(2) (c from M/s.Akshara Enterprises India Pvt Ltd for Rs.2,54,00,000/- Total Amount was paid by them |
| approximately) super structures. | and Registration was completed on 10.08.2021 | ||
| 3 | Company land adm.2.427 hectares/6.00 Acrres bearig khasra No.210/5, and 210/1 located in village Vikrampur, Thasil Bazpur, District Udam Sigh Nagar in Uttarakhand state | Rs.1,04,00,000/- | Rs.10,40,000/- M/s.YDR Estates Pvt Ltd is the successful bidder Amounts received and Registration completed on 23.03.2021 |
M/s.Akshara Enterprises India Private Limited has expressed its interest for unsold Jaggayapet property post auction dated 05.01.2021 as per Regulation 33 (2) (c). They submitted their bid for 264 Lakhs against reserve price of Rs.253 Lakhs and paid total bid amount along with interest for the delayed period and the registration was completed on 10.08.2021.
M/s. Akshara Enterprises India Pvt Ltd., was one of the successful bidders of Vijayawada property situated at Kanuru. Registration was requested to be completed in two parts i.e. one in the name of M/s. Ashara Enterprises India Pvt Ltd and the other in the name of its associate company M/s. Emesco Books Pvt Ltd., They assumed to complete the registration before 25.09.2021. As such the total amounts were paid along with interest for the delayed period and the registration was completed on 08.09.2021. The liquidation cost exceeded the estimated liquidation cost provided in the preliminary report due to increase in publication expenditure and GST payments on machinery sale.
The total realization after meeting the liquidation costs was distributed as per Section 53 (a) (b) (i) (ii) of IBC to secured creditors consisting of Union Bank of India, IDBI Bank and 24 months dues of workers preceding the liquidation commencement date, proportionately, the details of which were enclosed with the final report. The Liquidator submitted the final report as per Regulation 45 (1) & 45 (2) of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. According to final report:
there are no relinquished assets to be disposed of by the Liquidator left as on the date and all have been sold and proceeds distributed to stakeholders. ii) There are no unclaimed proceeds of distribution or undistributed assets. iii) The affairs of the Corporate Debtor do not require any further investigation and has been completely wound up.
iv) The Bank Account of Corporate Debtor has been closed.
On the above submissions, the Liquidator sought for order of the dissolution by this Tribunal. In the background of the above stated facts I.A.No.99/2021 in TCP (IB) No.42/7/AMR/2019 is allowed and the Applicant is permitted to dissolve the Corporate Debtor i.e., M/s.Liners India Ltd. Accordingly, I.A.No.99/2021 is disposed of. Copy of this order shall be forwarded to the authorities with whom the Corporate Debtor is registered, i.e., RoC (Andhra Pradesh), OL, RD (SER) & IBBI (New Delhi), within 7 days from the date of receipt of the copy of this Order. Hence this order.