Tribunal Extends Liquidation, Allows Land Sale Below Value, Updates Address

The Tribunal extended the liquidation proceedings for another year due to lockdown disruptions, allowed the private sale of company land below certified value to a specific buyer, and directed the Registrar of Companies to update the communication address to the Liquidator's office. The judgment emphasized compliance with legal requirements and regulatory frameworks to facilitate the liquidation process.

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Issues:
Extension of liquidation proceedings, Private sale of company's land, Address recording by Registrar of Companies

Extension of Liquidation Proceedings:
The Liquidator sought an extension of the liquidation proceedings for another year due to disruptions caused by lockdown restrictions. Activities were limited, with legal actions taken against debtors pending in court. Despite unsuccessful e-auctions, a family member expressed interest in purchasing the company's land through private sale. The Registered Valuer certified the land's value at Rs. 8 lakhs, prompting the Liquidator to request a reduction in the reserve price by 25%. The Tribunal considered the circumstances and extended the proceedings till 15.01.2022.

Private Sale of Company's Land:
The Liquidator proposed a private sale of 9 cents of land owned by the company to a specific buyer at Rs. 6 lakhs, below the certified value. Regulations allowed for a reduction in the reserve price and private sale if e-auctions failed. The buyer's interest was personal, and the offer was within the permissible limits. The Tribunal approved the sale to the buyer, subject to regulatory compliance.

Address Recording by Registrar of Companies:
The Liquidator requested the Registrar of Companies to update the company's communication address to the Liquidator's office. The Liquidator had occupied a building on a rental basis, impacting liquidation costs. The Tribunal directed the Registrar to record the Liquidator's address for communication, emphasizing no further changes until the Corporate Insolvency Resolution Process concludes.

The Tribunal considered the Liquidator's submissions, regulatory provisions, and the necessity to facilitate the liquidation process. It allowed the extension of proceedings, approved the private sale of the company's land, and directed the Registrar to update the communication address. The judgment addressed the challenges faced during the liquidation process, emphasizing compliance with legal requirements and regulatory frameworks.

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