2019 (11) TMI 1391

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....hrawat, (A) MA-1846/2019 In CP-1514/2017 1. This is an Application by Mrs. Vandanaben Yogesbhai Patel, the Chairman of Agricultural Market Produce Committee, Vadodara for an Order in respect of the substantive prayers reproduced below :- (b) The Hon'ble Tribunal may be pleased to allow the Applicant to deal with the said property attached by Mamlatdar and realize the value of the secured asset towards satisfaction of claim of Applicant of Rs. 7,72,77,837.96, with direction to refund the surplus, if any, to the Official Liquidator and deficit, if any, to be included as claim of Applicant.  Alternatively, the Hon'ble Tribunal be pleased to order the Official Liquidator to consider the Applicant's claim on a pari-pasu with other secured creditors and direct the Official Liquidator that the net sale proceed from the sale of the assets of the company in liquidation be distributed to the Applicant on a pari-pasu basis with secured creditor having 1st Charge on the said assets of the Company in liquidation. (c) Pending the hearing and final disposal of the Company Petition, the attachment order of Taluka Development Officer, Vadodara vide letter dated....

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....nd in such manner as may be specified, namely :- (a) the insolvency resolution process costs and the liquidation costs paid in full; (b) the following debts which shall rank equally between and among the following :- (i) workmen's dues for the period of twenty-four months preceding the liquidation commencement date; and (ii) debts owed to a secured creditor in the event such secured creditor has relinquished security in the manner set out in section 52; (c) wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date; (d) financial debts owed to unsecured creditors; (e) the following dues shall rank equally between and among the following:- (i) any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date; (ii) debts owed to a secured creditor for any amount unpaid following the enforcement o....

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....or was appointed and while passing the Order, made observation in respect of the issue of attachment as under :- " (11) The RP has further detailed in his Application the properties of the Corporate Debtor attached by various authorities viz - (i) Sales Tax Dept., Vadodara, Gujarat (ii) Income Tax Dept., Mumbai. (iii) Vadodara Municipal Sevasadan, Gujarat. (iv) Directorate of Enforcement, Ahmedabad, Gujarat. (v) Recovery Officer, DRT-II, Ahmedabad. (12) These Departments have respectively attached number of properties of the Corporate Debtor, duly reflected in this Miscellaneous Application. Keeping brevity in mind all those properties are not reproduced in this order, however, on approval of Liquidation, the Liquidator shall obtain list of attached properties from each departments and place on record the same for due adjudication by this Bench. The Liquidator shall also place on record all other properties of the Corporate Debtor and guarantors which are not under attachments. (13) On perusal of this application filed by the RP, this Bench having noticed that the CoC approved resolution with 86.67% voting for liquidati....

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....3.2019 that, " (4) In respect of outstanding Tax from Sales Tax Department and others from the side of the Liquidator written submissions are on record. Copy to be handed over to the Learned Representatives of the Department." (5) "As per the procedure presently the attachment, if any, is to be lifted. If the departments have any objections, they can file the same, otherwise Order to this effect shall be passed on the next date of hearing". 5. This Bench is pained to take note of the fact, as affirmed by the Liquidator, that inspite of the clear directions the attachment has not been lifted, thus causing hindrance in the completion of liquidation process. In para 19 of the Application it is recorded as under :- " 19. In fact in a recent judgment of Leo Edibles & Fats Ltd. V. Tax Recovery Officer (Central) IT Dept. Hyderabad & Ors., the Hon'ble Hyderabad High Court vide its judgment dated July 26, 2018, in Section 36(3)(b) held that an order of attachment of a government authority cannot be a bar for completion of the sale of a liquidated asset. The Hon'ble Hyderabad High Court held as under :- Section 36(3)(b) of the Code indicates that no uncertain terms....