2023 (3) TMI 1079

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....23 passed by the learned Company Court, whereby the appellant's application, CO.APPL.627/2022 in CO.PET.318/2003, was rejected. The appellant had moved the said application, inter alia, praying that the winding up proceedings relating to Shree Shyam Cotspin Ltd. (hereftaer 'the company') be transferred to the National Company Law Tribunal for further proceedings under the Insolvency and Bankruptcy Code, 2016 (hereafter 'IBC'). The said application was resisted by respondent no.4, which is an asset reconstruction company. 2. It is claimed that respondent no.3 (Allahabad Bank) had assigned its secured debt as well as security interest relating to the company to respondent no.4. 3. Both the parties rely on the decision of the Supreme Cou....

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....r dated 08th December, 2004. 4.3 On 24thJanuary, 2005, direction was issued to Allahabad Bank to issue sale proclamation and invite bids from the public. However, since SDM, Sonepat had placed locks on the Company's property, Allahabad Bank was unable to proceed with the sale. Thus, on 14th July, 2005, the Court ordered SDM to remove the said locks and redirected issuance of sale proclamation. 4.4 Pursuant to the above-noted, three bids were received by Allahabad Bank and five were received in the Court, of which the bid of PP Homes and Infrastructure Private Limited [hereinafter, "Auction Purchaser"] was accepted on 29th September, 2005. 4.5 Despite acceptance of the bid, Allahabad Bank Could not hand over physic....

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.... for over two decades. Even prior to that, the net worth of the company stood eroded. Accordingly, a reference was filed before the Board for Industrial and Financial Reconstruction (hereafter 'BIFR') under the Sick Industrial Companies (Special Provision) Act, 1985 (hereafter 'SICA'). The BIFR had declared that the company was a sick company as way back, as on 11.11.1999. 7. It is apparent that the company could not be revived and therefore, BIFR, by its order dated 13.02.2003, had recommended that the company be wound up under Section 20(1) of the SICA. Pursuant to the said recommendations, proceedings had commenced before the learned Company Court. The Official Liquidator was appointed for liquidation of the company's assets. 8. Th....