Tribunal Approves Sale of Corporate Debtor as Going Concern under IBC, 2016

The Tribunal granted permission for the sale of the Corporate Debtor as a going concern under Sections 35(1)(N) & 60(5)(C) of the IBC, 2016. The Stakeholder Committee's approval, with over 83.37% voting share, supported the sale. The liquidator emphasized the need to sell remaining assets to maximize stakeholder value. The Tribunal approved the application (IA-5561/2021) based on stakeholder consent, allowing the sale. Pending applications were set for a physical hearing on a specified date.

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Issues: Application for permission to carry out the sale of the Corporate Debtor as a going concern under Sections 35(1)(N) & 60(5)(C) of the IBC, 2016.

Analysis:
1. The liquidator filed an application seeking permission to sell the Corporate Debtor as a going concern under Sections 35(1)(N) & 60(5)(C) of the Insolvency and Bankruptcy Code, 2016, along with Regulation 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
2. The Stakeholder Committee Meeting approved the proposal with more than 83.37% voting share, indicating support for the sale of the Corporate Debtor. The Corporate Debtor, an Engineering Procurement and Construction contractor, had completed various projects during the liquidation process.
3. Details of the property held and sold during liquidation included immovable properties like the Corporate office, factory, and a property in semi-finished condition. The proceeds from the sale were distributed to stakeholders, with specific mention of properties sold and amounts realized.
4. The liquidator highlighted the necessity to sell remaining assets of the Corporate Debtor at project sites as a going concern to maximize value for stakeholders. Two projects were identified for completion, requiring further time, resources, and efforts, which stakeholders had consented to sell as a going concern.
5. The Tribunal, after reviewing the application and considering the stakeholders' approval, allowed the application under IA-5561/2021, granting permission to carry out the sale of the Corporate Debtor as a going concern. The case was disposed of, with pending applications scheduled for a physical hearing on a specified date.

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