Tribunal grants relief to successful purchaser, extinguishes pre-sale tax dues, emphasizes need to prevent surprise claims The Tribunal granted relief to the applicant, the successful purchaser of the corporate debtor, by allowing extinguishing pre-sale tax dues and issuing ...
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Tribunal grants relief to successful purchaser, extinguishes pre-sale tax dues, emphasizes need to prevent surprise claims
The Tribunal granted relief to the applicant, the successful purchaser of the corporate debtor, by allowing extinguishing pre-sale tax dues and issuing necessary NOCs. The Liquidator was held not liable for NOCs post-sale as the sale was on an "As is Where is" basis. The Sale Certificate absolved the purchaser of pre-11.08.2021 liabilities. Respondents No.2 & 3 were estopped from raising issues due to untimely claims. The Tribunal emphasized the need for resolution applicants to start afresh post-approval without surprise claims to prevent re-entry into insolvency.
Issues: 1. Application under section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking reliefs related to tax dues, NOCs, and liabilities for a corporate debtor.
Analysis: 1. The applicant, the successful purchaser of the corporate debtor, sought various reliefs, including assistance in procuring valid licenses and extinguishing tax dues. Respondent No.1, the Liquidator, denied liabilities post-sale, emphasizing the sale was on an "As is Where is" basis.
2. The corporate debtor was liquidated and sold as a going concern. A Sale Certificate was issued post full payment by the successful bidder. The applicant needed NOCs for bank guarantees to secure new contracts, but Respondents No.2 & 3 demanded arrears payment pre-sale.
3. The Liquidator argued he had fulfilled obligations and was functus officio, hence not liable for NOCs. The Supreme Court precedent highlighted the need for resolution applicants to start afresh post-approval, without surprise claims.
4. The Tribunal noted the corporate debtor's revival efforts and the burden of past liabilities. Respondents No.2 & 3 failed to lodge claims timely, estopping them from raising issues now. The Sale Certificate absolved the purchaser of pre-11.08.2021 liabilities.
5. Urgency to secure bank guarantees for contracts led the Tribunal to grant relief for extinguishing pre-sale tax dues and issuing necessary NOCs. Other reliefs were not granted to prevent re-entry into insolvency.
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