Liquidation valuation and sale notice upheld where agricultural character of land was not lawfully converted to industrial use.

Fresh valuation and sale notice in liquidation were treated as compliant with the liquidation regulations because the liquidator had appointed registered valuers and proceeded on the material available. The applicant's attempt to classify the land as industrial failed, as the record contained no convincing proof of lawful conversion or payment of change-of-land-use charges, the earlier opportunity to adduce such evidence had attained finality, and revenue entries supported agricultural character. An RTI reply referring to industrial use for property tax purposes was held insufficient to establish legal conversion. The sale on an as is where is basis also supported the process.

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Issues: Whether the valuation and consequential sale notice issued in liquidation were in accordance with Regulation 35 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, and whether the subject land could be treated as industrial rather than agricultural.

Analysis: The application challenged the fresh valuation and sale notice on the premise that the land had industrial character and could not be valued as agricultural land. The record showed that the applicant had earlier asserted in other proceedings that the land was agricultural, that no convincing evidence of lawful conversion or payment of substantial change-of-land-use charges had been produced, and that the earlier order granting time to adduce such evidence had attained finality. The revenue entries were treated as supporting agricultural character, while the RTI reply indicating industrial use for property tax purposes was held insufficient to prove legal conversion. The liquidator had appointed registered valuers and proceeded on the basis of the material available, including sale on an as is where is basis, which protected the process from the complaint raised.

Conclusion: The valuation process and sale notice were upheld as compliant with the liquidation regulations, and the challenge to treat the land as industrial failed.

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