2020 (9) TMI 363

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....ed, Nagpur be allowed sale as Private contract to Resolution Applicant M/s R.C. Plasto Tanks and Pipes Private Limited, Nagpur for a total consideration of Rs. 15,00,00,000/- (Rupees Fifteen Crores Only) excluding applicable indirect taxes, stamp duty, cess, if any. b) That this Hon'ble Tribunal be pleased allow the proceeds of the Sale be distributed by the Liquidator as per Section 53 of the Insolvency and Bankruptcy Code, 2016. c) To provide such other relief as deemed provided. 2. The applicant submits that he was appointed as the Liquidator of the Corporate Debtor- Facor Steels Limited by an order of this Bench dated 26.06.2018. He submits that section 35 (f) subject to section 52 of the Insolvency and Bankruptcy C....

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....lass of secured creditors of the Corporate Debtor, who hold the first pari passu charge on all the assets of the Corporate Debtor. 5. It is submitted that it is difficult to segregate the assets of VISCO and the Corporate Debtor without causing any harm to its usefulness. It is submitted that if the assets of the Corporate Debtor are to be sold separately to different parties then most part of the building which is owned by the Corporate Debtor will have to be demolished which will substantially affect the realisable value. Further such demolition will also amount to violating the MIDC norms with respect to the percentage of construction and render the purchase of land unviable for the Resolution Applicant of VISCO. 6. It is further s....

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....Debtor proposed to be sold by private treaty to RC Plasto for Rs. 15 Crores. The applicant has filed an affidavit stating that they have served copies of the application by E-mail as well as Registered Post with acknowledgement due on 28.02.2020 to the following secured creditors: i. Mr. R.C. Das, Assistant General Manager of Bank of India having office at Bank of India, Visakhapatnam Main Branch, 47-11-35, Rednam Estate, 1st Lane, Warakanagar, Visakhapatnam - 530016 (A.P.). ii. Mr. R. Kalyan Sundarm Chief Manager of India Overseas Bank, having office at 47-15-12, Station Road, Dwarka Nagar, Vishakhapatnam - 530016 (A.P.). iii. Ms. Pooja Ashara, Manager of Invent Asset Securitization and Reconstruction Private Lim....

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....kruptcy Board of India (Liquidation Process) Regulation, 2016, provides as below:- "33. Mode of sale. (1) The liquidator shall ordinarily sell the assets of the corporate debtor through an auction in the manner specified in Schedule I. (2) The liquidator may sell the assets of the corporate debtor by means of private sale in the manner specified in Schedule I when- (a) the asset is perishable; (b) the asset is likely to deteriorate in value significantly if not sold immediately; (c) the asset is sold at a price higher than the reserve price of a failed auction; or (d) the prior permission of the Adjudicating Authority has been obtained for such sale: Provided that the l....

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....in force, the proceeds from the sale of the liquidation assets shall be distributed in the following order of priority and within such period and 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 precedi....

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....he same class of recipients, if the proceeds are insufficient to meet the debts in full; and (ii) the term "workmen's dues" shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013." Therefore, in view of the above provisions of Section 53 of the I&B Code, 2016 the liquidator have to act as provided under Section 53 of the Code for which the specific direction is not required from this Adjudicating Authority. 14. Also, Section 35 of the Insolvency and Bankruptcy Code, 2016 provides as below:- "35. (1) Subject to the directions of the Adjudicating Authority, the liquidator shall have the following powers and duties, namely:- (a) to verify claims of all the creditors; (b....