2019 (5) TMI 1469

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....ompany Law Tribunal (NCLT) under the Insolvency & Bankruptcy Code, 2016 with the prayer to set aside the order dated 22.04.2019 passed by learned Debt Recovery Appellate Tribunal (DRAT) in Miscellaneous Appeal No.548/2018, arising out of OA No.569/2018. The petitioner/corporate debtor had been proceeded against by the respondent/Canara Bank before the Debt Recovery Tribunal (DRT) under the Recovery of Debts Due to Banks & Financial Institutions Act, 1993, by preferring the aforesaid OA No.569/2018. Arising from those proceedings, the matter reached the DRAT. The DRAT vide its order dated 15.11.2018, appointed respondent nos.2 & 3 as Joint Court Commissioners to inter alia take over the assets of the petitioner, including the perishable asse....

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....ptcy Code 2016. Learned counsel for the petitioner submits that the goods are of perishable nature i.e. grains etc. and their disposal at an early date is of utmost importance to salvage their value. He further submits that the Resolution Professional has to take steps within 180 days and out of that period of 120 days is over. He is not able to proceed in view of the appointment of the Receiver by the learned DRAT. The keys of the premises, which is lying sealed, have been delivered to respondent bank by the two receivers. The premises are being guarded by the guards deployed by consortium of banks led by Canara Bank. The petitioner's application moved, as early as on 24.12.2018, for the purpose of de-sealing of the properties and de....

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....the view that the aforesaid rival submissions need not be gone into at this stage by this Tribunal because of the admitted position that a moratorium has been ordered by the NCLT in exercise of its powers under section 14 of the Code of 2016 which prohibits continuation of any proceedings against the corporate debtor. The present proceedings arise out of O.A. proceedings initiated by the bank against its borrowers and the corporate debtor being one of the defendants in the bank's O.A, prohibition under section 14 of the Code will come into operation and the Tribunal will stand prohibited from proceeding in the present matter. In case any direction(s) which is being sought on behalf of the Resolution Professional and the alleged landlord....

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....Commissioners with vesting of the assets of the corporate debtor in them, is preventing the IRP/RP from discharging his time bound duties and the interest of the corporate debtor is suffering. Learned counsel submits that the effect of the impugned order is that the Court Commissioners, appointed by the DRAT, continue to remain in control and custody of the assets of the corporate debtor, which would be detrimental to the interest of the corporate debtor, as due to the non-disposal of the perishable goods in a timely manner, their best value will not be realised. 5. Learned counsel submits that under the Insolvency & Bankruptcy Code, 2016, Section 12 lays down the time limit of 180 days during which the IPR/RP has to achieve its mandate. T....