2020 (1) TMI 1079

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....hnical Member R. Vidhya Shankar, Adv. and Srikanth Dwarakanath for the Applicant. V. Anush Raajan and Ms. Krithika Jaganathan, Advs. for the Respondent. ORDER B.S.V. Prakash Kumar, It is an MA 1052/2019 filed by the Liquidator of M/s. Surana Power Limited (under liquidation) seeking directions against the sole Respondent namely, M/s. Bharat Heavy Electricals Limited (hereinafter cal....

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....s entitled to seek relief under Section 52 of the Insolvency & Bankruptcy Code, 2016. 3. On hearing the submissions of either side and by seeing the relief sought by the Liquidator, it is evident that this Corporate Debtor erected its equipment worth of Rs. 915,25,23,094, whereas now the worth of the equipment has come down to Rs. 240 crore. 4. Over this liquidation value, the Respondent cou....

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....ion of charge in favour of the Bankers by the Corporate Debtor will not be binding upon BHEL. 7. In the backdrop of this, for there being an order from the Arbitrator stating that, BHEL has a lien on machinery lying at site as well as goods and also charge over fully or partially erected facilities at site, and that this Arbitral Award not being assailed by the Corporate Debtor, this order will....

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....vour of BHEL over the machinery entailed in this issue, and the character of hypothecation are of the same character. But, in the case of lien, it is deemed that the asset is lying with the lien holder, whereas in the case of hypothecation, it is construed that asset is lying with the borrower. In the case of hypothecation, the creditor has to seek possession and realisation, whereas in the case o....