TaxTMI 
TaxTMI 
2024 (11) TMI 1010
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...., Advocate For the Respondent No.3 : Mr. Abhijit Atur, Advocate JUDGMENT ( Hybrid Mode ) [ Per : Justice Sharad Kumar Sharma , Member ( Judicial ) ] These are two Company Appeals preferred by the Appellant herein. In Comp App (AT) (CH) (Ins) No.314/2020, the Appellant seeks to challenge the Order of 30.12.2019, as passed by the National Company Law Tribunal, Bengaluru Bench in IA No.47/2019, as preferred in CP(IB) No.14/BB/2017, by virtue of which the Corporate Debtor has been directed to be put to liquidation. On the other hand, in Comp App (AT) (CH) (Ins) No.329/2022, which is preferred by the Appellant, the Appellant puts a challenge to the Impugned Order dated 24.06.2022, which has passed by the National Company Law Tribunal, Bengaluru Bench in IA No.140/2022 in CP(IB) No.14/BB/2017, wherein the prayer of the Appellant seeking for issue of an appropriate direction to the liquidator to put on hold the auction of the immovable asset of the Corporate Debtor, to consider his proposal to sell the Corporate Debtor as a going concern and accordingly to provide him a sale notice for the same in the interest of maximisation of the value of Corporate Debtor was negative....
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.... the Resolution Professional filed an application IA No.47/2019 praying for orders on liquidation of Corporate Debtor and the Learned Adjudicating Authority passed orders on 30.12.2019 ordering liquidation of Corporate Debtor and appointing the liquidator to supervise the process. It is the contention of the Appellant that his Resolution Plan was rejected without due diligence, that the Government of Karnataka too had shown its interest in the process of submission of the Resolution Plan, and in the revival of the Corporate Debtor, rather than proceeding with the Liquidation and that the Labour Unions of the Corporate Debtor too had also supported the Resolution Plan of the Appellant and they had also moved an application being IA No.49/2018, requesting for the approval of the Resolution Plan, which had been submitted by the Appellant. He further contends that he has revised his Resolution Plan to suitably address the objections raised on the plan submitted by him and submitted 5 Addendums to make it more viable, that he sought to further revise the Resolution Plan by filing IA No.449/2019, that his intention was to take over the entire assets of the Corporate Debtor, as a go....
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....to grant interim relief of stay and permitted the liquidation of Corporate Debtor vide order dated 13.12.2019 to be continued and rejected the said Interim Relief Application and consequently, permitted the process of e-auctioning of the property of the Corporate Debtor scheduled to be held on 29.09.2021 to be continued. It has further been informed by the Learned Counsel for the Respondent, that the auction proceeding of the assets of the Corporate Debtor, has already been proceeded with and completed and the claim had already been settled in favour of the claimants and the assets have been handed over to the auction purchaser. It is to be noted that the Challenge in the instant Company Appeal, as reflected from the relief clause, is limited to the extent of putting the challenge to the order passed in IA No.47/2019, which was filed by the Resolution Professional under section 33(1), to be read with section 60(5) of the Insolvency and Bankruptcy Code, 2016. Seeking for setting aside of the said order and for consideration of his resolution plan instead. The Order passed in IA No.47/2019 preferred by the Resolution Professional by Learned NCLT is extracted hereunder:- ....
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....nsels Present: For the Resolution Applicant : Shri Bharath M. For the RP/Respondent : Shri Nischal Dev B.R with Shri Ameya Gokhale, Ms. Apeksha, For the Respondent No.2 : Shri Mohammed Afeef, For the EARC : Shri Vikram Trivedi, with Shri Keerthi Hegde 6. After verification of claims, 6 Financial Creditors EARCL (Rs.1,253 Cr. / 82.65%), SBI-GF (Rs.97.27 Cr./6.43%), PNB (Rs.67.66 Cr./4.47%), SBI (Rs.59.41 Cr./3.93%) OBC (Rs.25.02 Cr/.1.65%) and Amondz Finanz Limited (9.91Cr/ 0.66%) alone entitled for total amount of Rs.1512.63 Cr. Apart from above Financial Creditors, Commercial tax dues are to the tune of Rs.379 Cr., apart several crores of rupees due to Operational Creditors, workers etc. And the operations of Company was stated to have been suspended as early as April, 2015 due to various reasons. Therefore, various contentions raised by Applicant that its Resolution Plan is most viable, alternative to revive operations of the Company etc., are not all tenable and baseless and thus they are liable to be rejected. The COC has dispassionately considered the issue vis a vis the object of code, interest of all sta....
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....iled by him under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, to be read with Rule 11 of the NCLT Rules. In the said Application, the Appellant had prayed for staying the auction process of the Corporate Debtor's immovable assets, for directing the Liquidator to consider his proposal to sell the Corporate Debtor as a going concern and accordingly to provide him with the sale notice for the same in the interest of maximization of the value of the assets. The Relevant relief prayed for in the said application is extracted hereunder: - "This Application has been filed by Mapletree Leather Goods Pvt. Ltd., U/S.60 (5) of the IBC, 2016 R/w. Rule 11 of the NCLT Rules, 2016 against the Liquidator of M/s. Falcon Tyres Limited (Corporate Debtor) seeking the following reliefs: a. Stay on any further auction of the said immovable asset by the Liquidator; b. Direction to the Liquidator to consider the Applicant's proposal to sell the Corporate Debtor as a going concern and accordingly provide the Applicant a sale notice for the same in the interest of maximization of the value of the assets; c. Pending the hearing and final disposal of the pres....