TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1210
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....rst Floor at RG City Centre and has filed claim before the Liquidator of the Corporate Debtor ("CD") - M/s RG Infra Build Pvt. Ltd. Company Appeal (AT) (Ins.) Nos.1311 of 2024 has been filed by the Liquidator of the CD, challenging the part of direction issued by Adjudicating Authority in IA No.355 of 2021, whereas Company Appeal (AT) (Ins.) Nos.2137 of 2024 has been filed by Punjab National Bank, a Financial Creditor of the CD, challenging part of the order passed in IA No.355 of 2021. 2. Brief facts of the case necessary to be noticed for deciding the Appeal are: (i) The Appellant entered into an Agreement to Sell dated 24.04.2018 with the CD - RG Infra Build Pvt. Ltd. for sale of commercial unit B-101, First Floor at RG City Centre, admeasuring built up area of 301.75 meters, for a total sale consideration of Rs.2.70 crores. Atul Paper Pvt. Ltd. paid an amount of Rs.2.01 crores towards sale consideration and possession of the unit was also handed over to the Atul Paper Pvt. Ltd. on 25.04.2018. However, no Sale Deed could be executed in favour of Atul Paper Pvt. Ltd. (ii) The Corporate Insolvency Resolution Process ("CIRP") against the CD commenced on 25.09.2019 on an Applic....
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....f the Company Appeal (AT) (Ins.) Nos.2137 of 2024 as well as delay in refiling of the Appeal. Application being IA No.7961 of 2024 praying for condonation of delay in filing of the Appeal was allowed vide order dated 20.02.2025. In IA No.7672 of 2024 praying for condonation of refiling delay, reply was directed to be filed by order dated 20.02.2025, but no reply has been filed. IA No.7672 of 2024 praying for condonation of refiling delay, is allowed. 4. We heard learned Counsel appearing for Atul Paper Pvt. Ltd.; learned Counsel appearing for the Liquidator as well as learned Counsel appearing for the Punjab National Bank. 5. Learned Counsel appearing for the Appellant in Company Appeal (AT) (Ins.) Nos.1100 & 1101 of 2024 in support of the Appeal(s) submits that the Appellant has paid an amount of Rs.2.01 crores out of total sale consideration of Rs.2.70 crores for the unit B-101 and was handed over the possession on 25.04.2018. The Appellant being in possession of the unit, by virtue of Section 53A of the Transfer of Property Act, 1882 ("Property Act") the Liquidator is prohibited from enforcing any rights in the said unit. It is submitted that the Appellant was always ready to ....
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....aim, if any, of the Appellant, shall be settled in accordance with the provisions of the IBC. Atul Paper Pvt. Ltd. neither can hold the possession nor can claim refund of Rs.2.01 crores. The Adjudicating Authority could not have directed for refund of Rs.2.01 crores. 7. Learned Counsel appearing for the Punjab National Bank submits that the CD had purchased the unit by Sale Deed dated 04.12.2015. The CD have mortgaged the unit B-101 by Mortgage Deed dated 11.12.2015 in favour of the Punjab National Bank. Unregistered Agreement dated 24.04.2018 was entered by Atul Paper Pvt. Ltd. with the CD, without obtaining a 'No Objection' from the Financial Creditor. Without No Objection of the Financial Creditor, the property cannot be dealt with. Before the RP and the Liquidator, Atul Paper Pvt. Ltd. two Directors filed a claim of Rs.2,51,85,025/-, with interest. The Adjudicating Authority erred in issuing direction to refund the amount of Rs.2.01 crores to Atul Paper Pvt. Ltd., whereas no such prayer was made in IA No.355 of 2021. The Atul Paper Pvt. Ltd. at best is entitled for settlement of its claim in accordance with Section 53 of the IBC. 8. We have considered the submissions of learn....
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.... for all its dues that may become due and payable by the VENDEE(s) to the VENDOR." 11. Learned Counsel for Atul Paper Pvt. Ltd. has relied on provisions of Section 53A of the Transfer of Property Act and submits that part performance having been made by the Vendee - Atul Paper Pvt. Ltd., the RP and the Liquidator are prohibited from enforcing any right in the asset. Section 53A of the Transfer of Property Act, 1882 is as follows: "Section 53A: Part Performance. 53A. Where any person contracts to transfer for consideration any immoveable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has. in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract, then, notwithstanding that, or, where there is an instrument of transfer, that the transfer has not been completed in the manner prescri....
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..... Atul Paper Pvt. Ltd. also filed a claim in the CIRP, copy of which Claim Form filed by Atul Paper Pvt. Ltd. before the RP has been brought on the record, which is dated 17.08.2020. In the claim, which was filed for Rs.2,51,85,025/-, which included the interest upto 19.09.2019, the Claim Form further mentioned that "the above claim is without prejudice to my right for possession of my Unit No.B-101, on First Floor at RG City Centre situated at Plot No.SU, LSC at B-Block, Lawrence Road, Delhi, as per the Agreement to Sell dated 24.04.2018, entered between the CD and Atul Paper Pvt. Ltd., as per the Agreement to Sell dated 24.04.2018 entered between the CD and the Atul Paper Private Limited my rights and remedies under the law of India". It is further relevant to notice that the CD has purchased the asset in the year 2015 for an amount of Rs.6.7 crores and the CD has entered into a contract of sale with Atul Paper Pvt. Ltd. for an amount of Rs.2.7 crores. 16. Atul Paper Pvt. Ltd. having no right in the asset, directions issued by Adjudicating Authority to Atul Paper Pvt. Ltd. to vacate the premises, cannot be faulted. All assets of the CD are part of the liquidation estate, which l....