2026 (3) TMI 1452

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.... JATINDRANATH SWAIN MEMBER (TECHNICAL) For the Appellant : Ms. Susmithaa Shri, Advocate For Mr. Pranava Charan, Advocate For the Respondents : Mr. Nikhil Pathak, Advocate For Mr. Bendi Raviteja, Advocate for R1 Mr. VV Sivakumar, Advocate for R2 ORDER [Oral Judgment: Justice Sharad Kumar Sharma, Member (Judicial)] In the matters of liquidation, as regards to M/s. Kadevi Industries Ltd, a proceedings was taken up before the Learned NCLT, Hyderabad Bench by the Liquidator by filing an Application in the shape of IA No. 794/2021, which was preferred in CP(IB) No.10/07/HDB/2017. In the said application, the Liquidator prayed for directing State Bank of India and Axis Bank to transfer the balance amount held in certain accounts ....

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....ior to the initiation of CIRP. ii) Margin money of Rs. 69,29,360 (as on 20.03.2021) did not form part of the liquidation estate and hence cannot be transferred into the liquidation account. However, the claim of the SBI against the CD's default on account of invoked bank guarantees is to be adjusted accordingly iii) The Current Account balance of Rs. 38,73,342 in Axis Bank was subjected to a Garnishee order by the Income Tax Department under section 226(3) of the Income Tax Act before the CIRP date. Since this amount was to be paid to the Income Tax Department against the pending tax arrears of the CD, the ownership of these funds by the CD ceased on the date prior to the CIRP. Therefore, this amount does not form part....

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....rate Debtor, passed on 03.12.2025, which was rendered by the Tribunal in IA(IBC)/Dissolution/07/2025 in CP(IB) No.10/07/HDB/2017. As per the order of dissolution dated 03.12.2025, the Learned Tribunal has observed that the liquidation process has been completed, as per the procedures contemplated under the Code, dissolving the Corporate Debtor subject to the observations, which has been made, while exercising the powers conferred to the Adjudicating Authority under sub-section (7) of Section 59 of the Code. 6. The limited question, which now falls for consideration at this stage, is whether anything survives to be decided in the instant Company Appeals in view of the order of dissolution having been passed on 03.12.2025 and the corporate....

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....f now since the liquidation process has already been completed, resulting into a consequential dissolution, the proceedings of the Company Appeal (AT) (CH) (Ins) No. 330/2024 has been admitted by the Counsels to have been rendered redundant, and would need no adjudication on merits because pursuant to the order of dissolution, all disputes would be taken to have been concluded and determined and thus owing to the order passed on 03.12.2025, the instant Company Appeal would stand disposed of, in terms of the dissolution order and nothing much material is required to be considered and decided, owing to the facts which we have already dealt with in the preceding paragraph. 8. So far as the connected Company Appeal (AT) (CH) (Ins) No. 390/20....