TaxTMI 
TaxTMI 
2021 (1) TMI 1148
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....(Applicant), U/s.54 of IBC, 2016 R/w Rule 14 of IBBI (Liquidation Process) Regulation, 2016, by interalia seeking to direct the Financial Creditor namely Karnataka Bank Limited, Basaveshwaranagar Branch to (i) realize the third party guarantee at the earliest and (ii) to remit the CIRP Cost/ Liquidation Cost to the Liquidator; to direct M/s. Bharat Co-op Bank (Mumbai) Ltd., to foreclose the Fixed Deposits as per the Liquidator's Letter dated 20.12.2019 and remit the proceeds of fixed deposits to Liquidation Bank Account and to pass suitable Orders for early dissolution of the Corporate Debtor (M/s. Bunt Solar India Pvt. Ltd). 2. Brief facts of the case, which are relevant to the instant case, are as follows: (1) Initially, the m....
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....tribute towards CIRP/ Liquidation Cost hefore realizing the Security Interest of third party guarantee. However. Financial Creditor is pleading that since they are realizing security interest through SARFAESI Act and need not contribute to CIRP cost/Liquidation Cost. ii. The 2"4 possible realization is from M/s. Bharat Co-op Bank (Mumbai) Ltd., wherein Liquidator has located two fixed deposits,one FD amounting Rs. 1,41,129/- and another one Rs. 1,00,000/- and matures on 09.02.2020 and 06.02.2022 respectively. Liquidator has taken action to foreclose the above Fixed Deposits to meet the Liquidation process cost, but the Banker M/s.Bharat Co-op (Mumbai) Bank Ltd., through Advocates has taken a stand that these two Fixed Deposits are ....
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....ment of Objections dated 25.02.2020, by inter alia contending as follows: (1) The instant Application is wholly misconceived, untenable and is liable to be rejected. The instant Application does not centain the amount which is said to be CIRP Cost/Liquidation Cost and for payment of which a direction is sought. (2) The Liquidator by his letter dated 02.01.2020 claimed a sum of Rs. 7,83,200/- towards Resolution Professional expenses and a sum of Rs. 11,16,179/- by way of Liquidation expenses. So far as the Resolution Professional expenses is concerned, the Adjudicating Authority. by order dated 05.09.2019 clearly directed the Financial Creditor to review the expenditure incurred by Resolution Professional and also to verify....
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....iquidator has entered into such an Agreement, he is estopped from making any claim against the Financial Creditor. The IRP/RP/Liquidator has to enforce such an agreement. The claim for Rs. 11,16,179/- is made as inclusive of 1/5 of the estimated value of the Secured assets. The expenses and the fees claimed by the Liquidator are contrary to Regulation 6 of the IBBI (Liquidation Process) Regulation, 2016.As admitted by the Liquidator, there are no assets of whatever nature of the Corporate Debtor for realization, however, the Applicant claimed huge amount of Rs. 18,99,379/- The realisation of the secured asset given by a 34 party Guarantor may not be sufficient even to meet the huge dues exceeding Rs. 7.43 Crores payable to it. Hence, the Ap....
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....r and for necessary directions in respect of such dissolution". 6. In terms of Section 60 of Code, the Adjudicating Authority shall be NCLT having territorial jurisdiction over the place, where the registered office of corporate persons is located. By conjointly reading the above provisions, the ultimate objective of Code is either to resolve the issue by way of Resolution Plan or to dissolve the Corporate Debtor, as expeditiously as possible. In the facts and circumstances of The case, justify there would not serve any purpose to keep the Corporate Debtor under regular CIRP proceedings, and thereafter under Liquidation proceedings, under the provisions of Code, the Adjudicating Authority, by exercising its innerent powers conferred unde....