TaxTMI 
TaxTMI 
2020 (5) TMI 709
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....ok Kumar and Brothers against K.T.C. Foods Pvt. Ltd. (K.T.C. Foods) and was admitted by the Tribunal by order dated 29.08.2018. Since no resolution plan was received till 15.04.2019, the Committee of Creditors (COC) in its meeting held on 25.04.2019 passed resolution with 100% voting rights approving liquidation of K.T.C. Foods. Vide order dated 31.05.2019, K.T.C. Foods was directed to be liquidated in the manner as laid down in Chapter III of the Code and Shri Anup Kumar Singh then Resolution Professional (RP) was appointed as the Liquidator. It is submitted that after inviting proof of claims, receiving the claims, preparing the list of stakeholders and submitting the preliminary report and asset memorandum, it was found that there was one claim in Form D by financial creditor .e. Oriental Bank of Commerce, NCB Branch, Haryana, as well as claims of 8 operational creditors. It is stated that vide e-mail dated 05.10.2019, Oriental Bank of Commerce relinquished their security interest. It is further submitted that during the CIRP, the valuation reports were obtained from two valuers and since it came to the notice of then RP that the estimates of the values provided are significantl....
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....Section 53 of the Code, the applicant handed over the possession of all assets of K.T.C. Foods as a going concern to Shiv Shakti. 7. Copy of compliance certificate in Form H and final report are stated to be attached as Annexure M of the application. The following reliefs have been sought:- "a. That the Hon'ble Tribunal may graciously be pleased to approve the closure of Liquidation Process of the Corporate Debtor under Regulation a5(3)(a) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and Sale of Corporate Debtor as a Going Concern to M/s. Shiv Shakti Inter Globe Exports Private Limited, the highest bidder without any liabilities including contingent liabilities and with immunity from existing litigations, if any, against the Corporate Debtor by way of E-Auction at a total consideration of INR 18,45,86,646/- (Rupees Eighteen Crores Forty Five Lacs Eighty Six Thousand Six Hundred and Forty Six only); b. That the Hon'ble Tribunal may graciously be pleased to approve the aforesaid sale of Corporate Debtor without its dissolution; c. That the order be passed that after distribution of the proceeds of the Sa....
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.... Code on 26.11.2019. 11. However, the present application is not filed for dissolution of K.T.C. Foods. It has been pleaded during the course of hearing that Regulation 45 of the Liquidation Process Regulations 2016 provides for closure of the liquidation process of the corporate debtor where the corporate debtor is sold as a going concern. The provisions of Regulation 45 of the Liquidation Process Regulations 2016 as under:- "45. Final report prior to dissolution. (1) When the corporate debtor is liquidated, the liquidator shall make an account of the liquidation, showing how it has been conducted and how the corporate debtor's assets have been liquidated. (2) If the liquidation cost exceeds the estimated liquidation cost provided in the Preliminary Report, the liquidator shall explain the reasons for the same. (3) [The liquidator shall submit an application along with the final report and the compliance certificate in form H to the Adjudicating Authority for - (a) closure of the liquidation process of the corporate debtor where the corporate debtor is sold as a going concern; or (b) for the dissolution of th....
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....2. The details of the Liquidation Process are as under: Sl. No. Particulars Description (1) (2) (3) 1 Name of the corporate debtor K.T.C. Foods Private Limited 2 Case No. & NCLT Bench CA No. 387/2019 in C.P. (IB) No. 136/Chd/Hry/2018 Chandigarh Bench 3 Date of initiation of liquidation 31.05.2019 4 Date of appointment of liquidator 31.05.2019 5 Date of commencement of CIRP 07.09.2018 6 Name of RP during CIRP and his registration No. as IP Anup Kumar Singh IBBI/IPA-001/IP-P00153/2017-2018/10322 7 Name of Liquidator and his registration No. as IP Anup Kumar Singh IBBI/IPA-001/IP-P00153/2017-2018/10322 8 Date of Publication of Public Announcement under Form B 04.06.2019 9 Date of Intimation to Registry and Information Utility, if any, about commencement of Liquidation N.A. 10 Date of handover of charge by RP 31.05.2019 11 Date of submission of compliance, if any, directed by AA in the liquidation order and its particulars N.A. 12 Date of appointment of registered valuers, if any 17.12.2018. Appointment of Two Valuers namely Adroit Technical Services Pvt. Ltd. A....
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....sion of AA for distribution of unsold assets to stakeholders N.A. 28 Date of permission of the liquidator to realize the un-relinquished security interest by the secured creditor N.A. 29 Modified list of stakeholders and date of submission to AA N.A. 30 Date of realization 25.11.2019. Pertinent to mention that the entire amount payable by the highest bidder was realized One tranche. 31 Date of second realization N. A. 32 Date of first distribution 27.11.2019 33 Date of second distribution N. A. 34 Date of submission of Quarterly Progress Report-I (FY-1) 15.07.2019 35 Date of submission of Asset Sales Report to AA 29.11.2019 36 Date of submission of Quarterly Progress Report-II 14.10.2019 37 Date of submission of Quarterly Progress Report-III N.A. 38 Date of submission of Quarterly Progress Report-IV & Audit Report N.A. 39 Date of submission of Quarterly N. A. 40 Progress Report-I (FY-2) Date of submission of Quarterly Progress Report-II N.A. 41 Date of submission of Quarterly Progress Report-III N.A. 42 Date of submission of Quarterly Progress Repor....
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....he Liquidation Process has been conducted as per the timeline indicated in regulation 47 as under: Section of the Code/Regulation No. Description of Task Timeline as per regulation 47 Actual Timeline (1) (2) (3) (4) Section 33` Commencement of LCD and Appointment of Liquidator T 31.05.2019 Section 33(1)(b)(ii)/Reg. 12 (1, 2, 3) Public announcement in Form B T + 5 04.06.2019 Reg. 35(2) Appointment of registered valuers T+7 N.A. Section 38(1) and (5), Reg. 17, 18 and 21A Submission of claims; T+30 30.06.2019 Intimation of decision on relinquishment of security interest: 05.10.2019 (Since Amended Regulations were not applicable) Intimation of decision on relinquishment of security interest Section 38(5) Withdrawal/modification of claims T+44 N.A. Reg. 30 Verification of claims received under Regulation 12(2)(b) T+60 30.07.2019 Reg. 31A Constitution of SCC T+6 N.A. (Since Amended Regulations were not applicable) Section 40(2) Intimation about decision of acceptance/rejection of claim T+67 30.07.2019  ....
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....Please state details of any extension sought with the reason and granted: N.A. Sl. No. Type of Transaction Date of Filing with Adjudicating Authority Date of Order of the Adjudicating Authority Brief of the Order (1) (2) (3) (4) (5) 1 Preference transactions under section 43 NA NA NA 2 Undervalued transactions under section 45 NA NA NA 3 Extortionate credit transactions under section 50 NA NA NA 4 Fraudulent transactions under section 66 06.06.2019 Pending at NCLT, Chandigarh Bench. Listed for Next Hearing on 12.12.2019 9. All undischarged or matters pending before any Court or Tribunal relating to corporate debtor, if any, have been reported to AA. 10. I Anup Kumar Singh, hereby certify that the contents of this certificate are true and correct to the best of my knowledge and belief, and nothing material has been concealed there from. (Signature) Name of Liquidator : Anup Kumar Singh IP Registration No. : IBBI/IPA-001/IP-P00153/2017-2018/10322 Address as registered with the Board: 162/d/702, Lake Gardens, Kolkata, West Bengal, 7....
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....is no representation before us by Oriental Bank of Commerce that the stakeholders' Consultation Committee was not constituted and that this is prejudicial to the interest of Oriental Bank of Commerce. Similar representation has also not been made by any of the operational creditors. Therefore, no adverse inference is being drawn regarding non-constitution of the stakeholders' Consultation Committee. 18. We have noted above that the then Resolution Professional filed application CA 510/2019 regarding identified transactions under Section 66, 68 and 70 of the Code. The application is pending before this Bench. The issue involved is whether the liquidation process can be closed pending the avoidance application. During the course of the hearing, the learned senior counsel for the Liquidator has referred to Regulation 44 of the Liquidation Process Regulations 2016 reading as follows:- "44. Completion of liquidation. (1) [The liquidator shall liquidate the corporate debtor within a period of one year from the liquidation commencement date, notwithstanding pendency of any application for avoidance of transactions under Chapter III of Part II of the Code, befo....
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....ents dated 05.11.2019, any amount recovered from the respondents in CA 510/2019 upon the directions of the Tribunal, be distributed to the financial creditors only and will not form part of the assets to be taken over by the successful bidder. We may clarify here that as per details in Form H, the financial creditor Oriental Bank of Commerce has been distributed only 13.17% of the amount admitted of Rs. 1,28,02,31,577.52. However, in case the amount recovered from the respondents in CA 510/2019 is more than the amount still outstanding to Oriental Bank of Commerce, the amount recovered be distributed among the operational creditors (amount admitted Rs. 23,76,12,703/- and amount distributed zero). 21. In the application, the Liquidator has prayed for approval of the sale of the corporate debtor as a going concern to Shiv Shakti the highest bidder without any liabilities including contingent liabilities and with immunity from existing litigation if any against the corporate debtor. Reference has been made to Regulation 45 (3)(a) of the Liquidation Process Regulations 2016. Reference is also made to Regulation 32A and 33(1) of the Liquidation Process Regulations 2016. However, none....
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....tire amount claimed by the applicant by way of a demand draft, the instant CA No. 62/2020 is dismissed as infructuous and accordingly, CA No. 62/2020 was disposed of. In view of this order, the issue of reimbursement of money deposited as CIRP cost with the Interim Resolution Professional becomes infructuous. 25. It has been prayed that appropriate action be taken against the Liquidator for not performing his duties as Resolution Professional and for wilfully disobeying the Rules and Regulations framed by IBBI in the interest of justice. The matter relates to IBBI and therefore, the application becomes infructuous on this ground. 26. It is stated in the application that the applicant submitted his claim being an operational creditor before the Interim Resolution Professional alongwith an affidavit and documents required to furnish to prove his claim for an amount of Rs. 5,49,73,699/- which includes Rs. 3,43,21,069/- due as principal amount and Rs. 2,06,52,630/- due as interest on the delayed payment as agreed by the corporate debtor. It is stated that respondent Shiv Shakti has purchased the corporate debtor as a going concern and therefore, Shiv Shakti has acquired all its a....