2022 (2) TMI 1127 - Tri - Insolvency and Bankruptcy

Extension of Time Granted to Liquidator for Asset Removal with Liberty to Approach Apex Court for Further Orders

The Adjudicating Authority granted the Applicant liberty to approach the Hon'ble Apex Court for any further extension or modification of the order dated ... Seeking direction to Respondents to accommodate the Corporate Debtor's assets/medical equipment on their property for a period of 6 (Six) months from the date of receipt of the order of Liquidation - HELD THAT:- The Learned Counsel appearing for the Applicant at this stage, while submitting that the Corporate Debtor is a hospital, though not a going concern and the equipments to be removed are valuable medical equipments and since the Liquidator has no time to take appropriate steps, as her appointment was done recently prays for passing stay orders for a limited period, i.e. till the Liquidator approach the Hon'ble Apex Court for filing appropriate application. It is submitted that the time for removal of equipments as granted by the Hon'ble Apex Court is going to expire on 19.02.2022. In normal circumstances though this Adjudicating Authority have all powers to pass appropriate orders/directions with regard to all matters concerning with CIRP or Liquidation of Corporate Debtor, however, since, the instant application is filed seeking extension of time granted by the Hon'ble Apex Court, the Liquidator is required to approach the Hon'ble Apex Court only if she is advised to seek any extension of time or in any manner to modify the order of Hon'ble Apex Court - application disposed off. Issues:1. Extension of time to remove assets/medical equipment of Corporate Debtor from premises of Respondents.2. Disagreement between Liquidator and CoC on funding shifting expenses.3. Authority to grant extension of time as per order of Hon'ble Apex Court.Analysis:1. The Application sought an extension of time to remove assets from the premises of Respondents. The history of litigation involving the Respondents and Corporate Debtor was detailed, including orders from the Hon'ble High Court of Karnataka and the subsequent Hon'ble Supreme Court order granting a four-month extension. The Liquidator, appointed after the initiation of the liquidation process, filed the instant Application due to insufficient time for compliance. The Adjudicating Authority considered the circumstances and granted the Applicant liberty to approach the Hon'ble Apex Court for any further extension or modification of the order dated 20.10.2021.2. The disagreement between the Liquidator and the Committee of Creditors (CoC) regarding funding for shifting expenses was highlighted. Despite the Liquidator's efforts to seek approval for funding in compliance with the Hon'ble Apex Court's order, the CoC did not approve the resolution for shifting expenses. Subsequently, the CoC approved the commencement of the liquidation process. This led to the Liquidator's inability to seek contributions for liquidation expenses from Financial Creditors, necessitating the request for an extension of time to remove the assets/medical equipment.3. The Adjudicating Authority acknowledged its power to pass appropriate orders concerning Corporate Insolvency Resolution Process (CIRP) or Liquidation but emphasized the need for the Liquidator to approach the Hon'ble Apex Court for any extension or modification of the order dated 20.10.2021. The Authority disposed of the instant Application by granting liberty to the Applicant to approach the Hon'ble Apex Court as advised, in accordance with the law. The Registry was directed to issue a certified copy of the order to all parties involved promptly.