2025 (2) TMI 1115 - AT - IBC

Appeal Revived on Liquidation E-Auction Due to Unresolved Asset Distribution Issues and Creditor Objections

STCI Finance Ltd. Versus IMP Powers Ltd. & Ors.

STCI Finance Ltd. Versus IMP Powers Ltd. & Ors. - TMI The National Company Law Appellate Tribunal, Principal Bench in New Delhi considered an application for the revival of an appeal in the matter of a liquidation e-auction involving the Appellant, State Bank of India, and other creditors. The key issues presented and considered in the judgment are as follows:1. Issue Presented:The primary issue before the Tribunal was whether to revive the appeal that was disposed of previously, considering subsequent developments related to the distribution of assets in the liquidation process.2. Detailed Analysis:- Relevant Legal Framework and Precedents:The Tribunal referred to the previous judgment where the appeal was disposed of without delving into the merits due to the Liquidator offering to pay the admitted claim of the Appellant. The Tribunal considered the subsequent objections raised by other creditors regarding the distribution proposed by the Liquidator.- Court's Interpretation and Reasoning:The Tribunal noted that the question of distribution remained open for consideration despite the Liquidator's stand. The Tribunal acknowledged the objections raised by other secured creditors and decided to revive the appeal to address the distribution issue.- Key Evidence and Findings:The key finding was that the appeal deserved to be revived due to the unresolved distribution issue and the objections raised by other creditors. The Tribunal emphasized that the revival of the appeal did not imply a decision on the merits of the case.- Application of Law to Facts:The Tribunal applied the principle that all relevant issues should be considered before making a final determination in the liquidation process. The revival of the appeal was deemed necessary to address the outstanding distribution matters.- Treatment of Competing Arguments:While the Liquidator suggested reviving the appeal only concerning the distribution issue, the Tribunal decided not to limit the scope of the revived appeal at that stage. The Tribunal emphasized the need for a comprehensive review of all issues raised in the appeal.3. Significant Holdings:The Tribunal held that the appeal should be revived to address the unresolved distribution issues, and all parties, including the Appellant, other creditors, and the Liquidator, should be given an opportunity to present their arguments. The Tribunal set a date for the appeal to be listed along with another related appeal for further proceedings.In conclusion, the National Company Law Appellate Tribunal decided to revive the appeal to address the distribution matters in the liquidation process, emphasizing the need for a comprehensive review of all issues raised by the parties involved.