TaxTMI 
TaxTMI 
2019 (8) TMI 1462
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....lant and Machinery and Germ Plasm/Parent Seeds of R1 Company i.e., M/s Super Agri Seeds (p) Ltd by its Liquidator/R2. 2. The Applicant has inter-alia prayed for the following reliefs in the application: (a) To direct the Liquidator to state on oath why he has failed to value all the assets (Tangible, Intangible, Movable and Immovable) of the Company before bringing for sale. (b) To Direct R6 to state whether the Parent seed and germ plasm of R1 Company is still lying with them, if not to whom it was handed over (c) To Direct R5 to state on Oath the Quantity of Seeds, Packing Material, plant and Machinery that was received by him on the purchase of Factory land and building. (d) To Appoint an advocate o....
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....es sold and their valuation before Liquidation, during Liquidation and the bid values. All such values included the value of plant and machinery as per the foot note provided to the Table. The R2/Liquidator further stated that e-auction was conducted in a transparent manner and in accordance with the provisions of the Reg. 33(1) thereby realizing almost 50% more that the Liquidation value. It is stated that the Applicant has not handed over physical possession of all the assets of the Corporate Debtor including the Germ Plasm and, therefore, the Applicant is liable to be punished U/s 68 of IB Code for concealment of properties. Reiterating above, the Liquidator prayed to dismiss the Application with exemplary costs in terms of Section 65 of....
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....id not materialize in view of the declaration of Moratorium by the Tribunal in respect of this CD. Stating thus, R5 prayed to dismiss the Application. 8. Counsel for R6 filed its Counter and stated that that around 34 tonnes of seeds of R1 Company was stored in their cold storage and that huge arrears of lease rentals from R1 Company was due to them. Accordingly, R6 has lodged a claim with the RP(Liquidator) representing the Corporate Debtor. It is further stated that the RP representing CD had no right to seal the portion of the cold storage in which the stocks of CD were stored with them. It is further stated that they issued a legal notice dated 14.04.2018 to the RP of CD requesting him to remove the entire stock of CD stored in their....
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....rties. 12. The points that arise for consideration before this Adjudicating Authority are: i. Whether the Value of Factory Land and building was maximized by the e-auction conducted by R2 wherein R5 stood as the successful purchaser? ii. Whether the Applicant is entitled to any relief as prayed for in the application with regard to Germ Plasm/Parent seed and packing materials? 13. From the Addendum to the Progress report filed on 08.10.2018, submitted by the Liquidator, it is observed that the IRP has carried out a valuation of Plant and Machinery lying in the Factory land and Building through two Valuers namely G.S. Mittal and Mr. V. Ravinder Rao dated 16.10.2017 and 21.10.2017 respectively. As per the Valuation rep....
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....I under SARFAESI Act, R5 offered to purchase the factory land and building for a consideration of Rs. 5.51 Crores. In the auction sale that was concluded in the favor of R5, held by R2, the subject property was purchased for a value of Rs. 6.25 Crores. 16. With regard to the Germ Plasm/parent seeds, it is clear from the letter dated 09.01.2018 that was written by R2 to R6 that R2 has taken cognizance of the fact that the Germ Plasm and the Parent seed were in the Custody of R6. Further to that, it appears that R2 has not taken any steps to secure the germ Plasm and parent seed which are valuable asset of the Company. It is also observed that though R6 has preferred a claim for the lease rental that are due from the R1 Company with R2 (wh....
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....imisation of value of assets of the 'Corporate Debtor' and thereby for all creditors. It is not maximisation of value for a 'stakeholder' or 'a set of stakeholders' such as Creditors and to promote entrepreneurship, availability of credit and balance the interests. The first order objective is "resolution". The second order objective is "maximisation of value of assets of the 'Corporate Debtor" and the third order objective is "promoting entrepreneurship, availability of credit and balancing the interests". This order of objective is sacrosanct. 18. In the backdrop of the superior ideals of the Code and from the foregoing discussions, it is observed that the total Liquidation value for subject Land and Buildin....