TaxTMI 
TaxTMI 
TaxTMI 
2021 (11) TMI 791
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.... the Adjudicating Authority has rejected the claim of the Appellant in respect of past dues of property holding numbers 70, 71, 73 and 74 located in E.G.P. Road, 27B N.C. Road, 1 and 2 Uttarpara Road, Bhatpara Municipality, District North 24 Parganas which are in possession of Respondent No. 1, Nicco Eastern Private Limited and quashed the related demand notice for pending dues of property tax issued by the Appellant to Respondent No. 1. 3. In brief, the facts of the case are that the property Shyam Nagar Cable Manufacturing Unit was sold by the liquidator of the Corporate Debtor, Nicco Corporation Limited (Respondent No. 2) which is in liquidation. The sale was effected in accordance with terms and conditions stipulated in the invitation for Expression of Interest (in short EOI), wherein in clause 12.1 it is stated that the proposal will be conducted on "As is Where is and Whatever There is Basis" and "No Recourse Basis". The purchaser of the said property (Respondent No.1), after the auction and confirmation of sale applied to the Appellant for obtaining trading licence and mutation of the said property in its name. In response to these applications, the Appellant issued a deman....
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....ter passing the order for liquidation by the Adjudicating Authority. Once the auction sale is completed and the property is transferred in the name of the auction-purchaser, it goes out of the liquidation estate. He has pointed out that the demand notice was issued on 1.2.2021, whereas the sale was completed much earlier on 8.10.2020, and sale certificate was executed in favour of Respondent No. 1. Thereafter the possession of the said properties was delivered to the auction purchaser on 9.10.2020. He has further argued that this appeal is therefore not covered under sub section (a), (b) and (c) of section 60(5) of the IBC. Therefore, the Adjudicating Authority does not have jurisdiction to adjudicate any dispute between the auction- purchaser (Respondent No.1) and Appellant Bhatpara Municipality. The Learned Counsel for appellant has also contended that the auction-purchaser, if aggrieved by the Demand Notice dated 1.2.2021, has other remedies which include representation to the Chairman of Bhatpara Municipality or Assessment Authority or in the writ jurisdiction of the relevant Hon'ble High Court. The purchaser did not take course to any such remedy. He has further referred to se....
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....smissed. 8. It is undisputed that the said properties were auctioned by the liquidator through an Invitation of EOI (attached at pp.98-119 of Appeal Paperbook). The terms and conditions of the proposed sale include the following clause 12.1 and clause 12.10:- "12.1 The proposed sale will be conducted on "AS IS WHERE IS AND WHATEVER THERE IS BASIS" AND "NO RECOURSE BASIS". The liquidator of the Company will undertake no liability as to any continuing, pending litigation, dispute, etc. to vacate premises, or any other liability whatsoever in relation to Sale Asset". Furthermore clause 12.10 is as follows:- "The Applicant should thoroughly satisfy itself about the nature, conditions and quality of the Sale Asset. The Liquidator gives no guarantee or warranty as to title, encumbrance and state of the Sale Asset or the conditions of the assets/material or/its quality for any specific purpose or use. It should be clearly understood that no claim/complaint about the stability/quality/condition/fitness for use will be entertained by the Liquidator. The Liquidator gives no assurance as to clear possession of the Sale Asset/Property or any part thereof, or connected litigation." 9. T....
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....orate insolvency resolution process, as on the liquidation commencement date; and (b) provide the last date for submission or updation of claims, which shall be thirty days from the liquidation commencement date.] (3) The announcement shall be published - (a) in one English and one regional language newspaper wih wide circulation at the location of the registered office and principal office, if any, of the corporate debtor and any other location where in the opinion of the liquidator, the corporate debtor conducts material business operations; (b) on the website, if any, of the corporate debtor; and (c) on the website, if any, designated by the Board for this purpose." 13. Furthermore Regulation 34 of the said Regulations (supra) casts on the liquidator the duty to prepare Asset Memorandum specifying certain details. Regulation 34 is reproduced hereunder:- " 34. Asset memorandum - (1) On forming the liquidation estate under section 36, the liquidator shall prepare an asset memorandum in accordance with the regulation within seventy-five days from the liquidation commencement date. (2) The asset memorandum shall provide the following details in respect of the....