TaxTMI 
TaxTMI 
2022 (5) TMI 915
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....ery from Block B of the Lanco Babandh Power Limited and to direct the Liquidator to commence the period of 9 months for completion of the above works from 12.11.2021. c. To declare that the timeline be subject to the applicant having effective and peaceful possession of the site without any hindrances and is in a position to commence the works; d. In addition to prayer a), b) and c), to issue a direction to the Liquidator to waive off the penalty, if any, as may be applicable in terms of Clause IX of the Letter of Intent keeping in view the revised timeline; e. In addition to prayer a) to d) issue directions to the Liquidator to waive the interest of 12% on payments made after 30 days from the issuance of the letter of intent; f. In addition to prayer a) to e) issue a direction/order to the Office of the Collector and District Magistrate, Collectorate, District Dhenkanal Odisha to take steps for smooth implementation of the liquidation process and to ensure that no further hindrance is created in or around the premises of the Lanco Babandh Power Ltd. and that workmen/other creditors of the company in liquidation do not gather there in order to ca....
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....on, including but not limited to workmen, ex-employees, etc., the security breaches being committed by such third parties, the security personnel of the applicant and the labour deployed at the site being assaulted and threatened with adverse consequences on commencing the works and the theft of material from the site at large quantities and consequential directions from the Collector to not start the work owing to the law and order situation at the premises. c. That the facts and circumstances in brief, giving rise to the present application are that the corporate insolvency resolution process for the company was initiated on 28.08.2019. However, as there was no resolution in sight, this Adjudicating Authority ordered for liquidation of the company on 27.11.2019 and Mr. Sanjay Kumar Gupta, an insolvency professional from AAA Insolvency LLP, was appointed as the Liquidator of the company. d. Subsequently, the Liquidator invited bids for auction in terms of the provisions of the IB Code, 2016 and relevant Regulations and the Applicant Company, submitted its bid for the asset being sold by the liquidator, viz., plant and machinery situated at Thermal Power Plant at ....
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.... of such assets. The representatives of the applicant company were also threatened and assaulted using criminal force. The security guards were also assaulted at the site and the trespassers also had possession of dangerous weapons. l. That the respondent had also apprised of such unruly incident to the Office of the Collector and District Magistrate of Dhenkanal, Odisha vide letter dated 21.09.2021, which did not lead to any immediate solution. m. That pursuant to the various representation being made by the applicant herein and through the Liquidator and his authorized representatives, inter alia, on 30.10.2021 and 09.11.2021 with Office of the Collector in Dhenkanal, several meetings had been arranged with the creditors of the respondent company so as to explain to them the procedure for realization of debts from a company in liquidation and the course of action which would be followed on account thereof. Further, the Liquidator vide letter dated 14.10.2021 undertook to settle the claims of the various creditors of the respondent company. n. That finally during the meeting held before the Collector, Dhenkanal on 09.11.2021, the Liquidator also apprised....
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....ng the imposition of penalty in the form of interest on payments being made beyond 30 days to the extent of 12% be shifted for the entire period when there was effective blockage at site which caused massive losses and expenses to the applicant. s. The applicant urges that such period of 30 days shall be directed to be computed from the date when the site became fully functional and the applicant herein was able to commence the dismantling works without any hindrances as stated herein above. t. That in case the above prayer of the applicant is not considered by this Authority, the applicant herein has been exposed to huge monetary losses as stated hereinabove due to the delay in commencement of the works due to the unrest at site and no work has been carried out on the site besides other site expenses including but not limited to electricity charges, etc. The interest on the unpaid amounts at the rate of 12% per annum shall culminate into huge amounts for no fault on the part of the applicant and for reasons totally beyond the control of the applicant. 3. Counsel for Liquidator filed his reply, inter-alia stating as under:- a. That a successful e-aucti....
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....btor. The buyer as per the letter of intent had to remove the Plant and Machinery within 9 months from the date of issue of Letter of Intent and in case of non-removal of material within the stipulated time, the Liquidator had a right to claim additional penal charges of Rs. 50 Lakhs per month from the buyer. f. That Liquidator moved an IA-600/2021 before this Adjudicating Authority seeking assistance from the Office of DM and SP, and this bench issued notice to the Office of DM and SP on 26.10.2021 and the Liquidator herein sent the Court order dated 26.10.2021 to the Office of DM and SP. g. That the Liquidator along-with the Applicant had been making endless efforts to break the deadlock caused due to protests at the site by the local workmen/employees etc. h. That the Liquidator wrote series of letters to District Magistrate. Dhenkanal on 16.09.2021, 21.09.2021, 07.10.2021, 14.10.2021, 28.10.2021 and 06.11.2021; and had rounds of meetings with the representatives of the workers etc., elected representatives, DM Dhenkanal, SP Dhenkanal (i.e. on 20.09.2021 & 28.09.2021, 09.10.2021, 11.10.2021 & 30.10.2021) and the matter was finally resolved by the Liqui....