2025 (6) TMI 198

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.... Agarwal, Advocates ORDER ( Hybrid Mode ) These two appeals have been filed by the liquidator of Adi Ispat Pvt. Ltd. challenging the order 17.12.2024 passed by National Company Law Tribunal, Division Bench, Court No. II Kolkata in IA (I.B.C)/1687(KB)2023 filed by the liquidator as well as the IA (I.B.C.)/1562(KB)2024 filed by the liquidator. 2. The liquidator has challenged order of the same date passed in two applications filed by the liquidator rejecting the applications. The liquidator has come up in these appeals challenging the said order. 3. Brief facts necessary to be noted for deciding the appeal are: 4. In the liquidation proceedings the liquidator has issued a e-auction sale notice on 28.10.2022 for sale of asset....

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..... Counsel for the liquidator and Shri ShaunakMitra appearing for Respondent No. 1. 9. Shri Awasthi, appearing for the appellant submits that the sale was not made of the CD as a going concern rather sale notice mention the sale of assets of the CD. And hence the Respondent No. 1 was not entitled for any relief and concessions and the liquidator has rightly filed the application for dissolution of the CD. It is submitted that the Respondent No. 1 was not entitled for any relief and concessions hence the application was filed to recall of the order. Shri Awasthi, further submits that even in the agreement of sale of the assets which was granted, earlier the words sale as a going concern was written which was scored out and it was made sale....

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....n the advertisement when the entire factory is sold, in paragraph 7.1. to 7.5. following has been observed: "7.1. We find from the sale notice published the corporate debtor was to be sold "as is where is basis" "as is what is basis" "whatever there is basis" and "no recourse basis". 7.2. The advertisement includes land, buildings, plant and machinery of the corporate debtor in its entirety. The advertisement has neither indicated that it is a slump sale or sale as a going concern. 7.3. It is not the case of the liquidator that the entire plant along with its plant and machineries was not sold to the respondent. The case of the liquidator is only that the plant was not functioning for the past 6 years, and therefo....

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....mittee to sell the corporate debtor as a slump sale basis was without exploring the options provided in Regulation 32(d) and 32(e) which is against the objectives of the Code, which has been observed in paragraph 7.9 to the following effect: "7.9. When that being the case, the Stakeholders' Consultation Committee decision to se1l the corporate debtor as a slump sale basis without exploring the options provided in Regulation 32(d) and 32(e) is against the objectives of the Code. In any event, neither the sale notice nor the sale certificate has indicated that the sale was slump sale except that both the documents contained the words "as is where is basis", "as is what is basis", "whatever there is basis" and "no recourse basis".....