Update land records for accurate asset sale in liquidation case

The Tribunal granted the application under Section 60(5) of the IBC, 2016, directing the respondents to update revenue records and conduct demarcation of the subject property in a liquidation case. The discrepancies in land measurements required clarification for the accurate sale of assets, aligning with the Liquidator's duties to manage and protect the corporate debtor's assets. The order aimed to ensure compliance with the law and facilitate the effective liquidation process by ascertaining ownership rights and updating records for proper asset management.

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Issues:
1. Application under Section 60(5) of the IBC, 2016 for directions to update revenue records and carry out demarcation of subject property.

Detailed Analysis:

Issue 1: Application under Section 60(5) of the IBC, 2016 for directions to update revenue records and carry out demarcation of subject property

The application filed under Section 60(5) of the IBC, 2016 pertained to the liquidation proceedings against the corporate debtor, where the Liquidator sought directions for updating revenue records and conducting demarcation of the property. The property in question, located at Village Jugiana, Ludhiana, was subject to mortgage by Kotak Mahindra Bank. Discrepancies arose regarding the exact size of the land, with valuation reports indicating varying measurements. Despite efforts by the Liquidator to ascertain the accurate land holdings through a title search and correspondence with the respondents (Naib Tehsildar and Patwari), no response was received, hindering the sale and release of the subject land.

The Tribunal observed that as per the provisions of Section 35 and 36 of the IBC, the Liquidator is entrusted with powers and duties to safeguard and manage the assets of the corporate debtor, including taking measures to protect and preserve assets, and to apply for necessary orders for liquidation. Given the discrepancies in land measurements and the importance of ascertaining the exact ownership rights for subsequent sale of assets, the Tribunal directed the respondents to update revenue records and conduct demarcation of the subject property in compliance with the law. The order was also to be served on relevant authorities for necessary compliance.

In conclusion, the Tribunal allowed the application under IA No.152/2021, emphasizing the significance of accurate demarcation and updating of records to facilitate the liquidation process effectively and ensure proper management of the corporate debtor's assets.

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