TaxTMI 
TaxTMI 
2021 (1) TMI 443
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..../s 35(1)(n) of Code R/w Regulation 38(1) of IBBI( Liquidation Process) Regulations, 2016, by inter alia seeking to order for distribution of the unsold Intangible Assets- Intellectual Property available with the Corporate Debtor, Virtual Logic Systems Private Limited (In Liquidation) to Technology Development Board, Secured Financial Creditor, towards their liabilities. 2. Brief facts of the case, as mentioned in the Application, which are relevant to the issue in question, are as follows: (1) Initially, C.P. (IB) No.126/BB/2017 is filed by Mr. K.S. Hiremath ('Applicant/Operational Creditor') under Section 9 of the IBC, 2016 seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Virtual Log....
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.... like surface table, air compressor, measuring instruments like height gauges, vernier caliper etc., steel and aluminum scraps and hand tools. 2 Electronic items like connectors, cables, cameras, haptic devices, UPS, 3D glasses etc. Items about 30 Desktop PCs, keyboards, projector, connectors etc. 3 Office items including Used office furniture like tables, chairs Desktop PC, laptops, projectors, Steel Rack etc. B Intangible Assets - Intellectual Property (Software) 1 Marga-Laparoscopic Surgery Training Simulator 2 Dissect- Human Anatomy Visualization 3 Steer Simulator- LMV driver raining Simul....
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....ng Simulator 43,30,954 31,25,839 Not determinable 8 Home Alive real estate 1,05,45,156 1,14,16,349 Not determinable 9 Home Alive Ecommerce 2,85,634 Not determinable Total 2,01,11,859 2,01,68,387 NIL Further, Intellectual Property derives its value only from its usage by a person, who has a utility to it and no buyers were identified nor generating revenue currently or projections are available. Hence, the Liquidation value is not determinable i.e. Nil. (5) In pursuant to the Liquidation process, the Public Announcements were made by the Liquidator for e-auction on 24th April 2019 and 24th May 2019 fo....
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.....47% in liquidation. And its claim was admitted for Rs. 3,88,61,178/- A Charge was created by TDB over Intangible Assets- Intellectual Property of the Corporate Debtor on 26th July, 2012 with charge ID 10369504 for an amount of Rs. 2,50,00,000/-(Rupees Two Crores Fifty Lakhs only). Further, during the Liquidation process, the TDB relinquished its security interest in the Intellectual Property available with the Corporate Debtor as per Section 52 of the Insolvency and Bankruptcy Code 2016 vide letter dated 14th June 2019 to from part of liquidation estate. (9) The Liquidator conducted Stakeholders meeting on 12th February 2020 and informed that Intangible assets available with Corporate Debtor were not realized/ sold as the software....
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.... the liquidation process; and (2) the affairs of the Corporate Debtor do not require any further investigation; He may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution. 6. The above facts established that assets of the Corporate Debtor have been completely liquidated and only intellectual Property in question, on which TDB has charge, remains with Corporate Debtor. The Applicant has also explored the possibility of selling it but in vain. And the amount realised out of liquidation of assets was only Rs. 2,26,000/- which was utilised for CIRP costs, and no further funds will be available even for CIRP costs, if it is further permitted ....