Dismissed

Official Liquidator of v. M/S Rabo India Finance Limited

Karnataka HC13 Dec 2023CA/137/2017

Case brief

AI extract

What is this about?

Official liquidator of Jupiter Bioscience Ltd. sought court order to sell factory unit at Bidar. Court permitted appointment of valuer, directed secured creditor to submit title deeds, and allowed public auction sale considering competing creditor claims.

What did the court decide?

Permission to appoint valuer; direction to respondent to handover title deeds; permission to sell properties via public auction.

Official Liquidator of Vs M/S Rabo India Finance… — Insolvency and Bankruptcy | Karnataka HC (2023)

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1 - NC: 2023:KHC:46843 CA No. 137 of 2017 IN COP No. 32 of 2011

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 13^TH DAY OF DECEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE C.M. POONACHA COMPANY APPLICATION NO. 137 OF 2017

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COMPANY PETITION NO.32 OF 2011

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BETWEEN:

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OFFICIAL LIQUIDATOR OF M/S JUPITER BIOSCIENCE LIMITED (IN LIQN) ATTACHED TO HIGH COURT OF KARNATAKA, CORPORATE BHAVAN, NO.26-27, 12TH FLOOR, RAHEJA TOWERS, M.G.ROAD, BANGALORE-560001

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…APPLICANT

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(BY SRI. SHRISHAIL NAVALGUND., ADVOCATE)

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AND:

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M/S RABO INDIA FINANCE LIMITED NO.20/F, TOWER, A PENISULA BUSINESS PARK, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI-400013

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Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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M/S IFCI LIMITED 8TH FLOOR, TARAMANDAL COMPLEX, NO.5-9-13, POST BOX NO.57, SAIFABAD, HYDERABAD, TELANGANA-500004

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…RESPONDENTS

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(BY SMT BHAVYA G MOHAN & SRI RAHUL M, ADVOCATES FOR R1 SRI NAGENDRA KUMAR, ADVOCATE FOR R2)

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THIS COMPANY APPLICATION IS FILED U/R 6 AND 9 OF THE COMPANIES (COURT) RULES, 1959, PRAYING TO ACCORD THE SANCTION FOR SALE OF THE FACTORY UNIT AT BIDAR AND DIRECT THE RABO INDIA FINANCE LTD TO FURNISH THE TITLE DOCUMENT ENABLING THE OFFICIAL LIQUIDATOR TO PROCEED WITH SALE A VALUER FROM THE PANEL MAY ALSO BE APPOINTED FOR VALUATION OF THE SAID FACTORY UNIT, AND ETC.

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THIS APPLICATION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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2 - NC: 2023:KHC:46843 CA No. 137 of 2017 IN COP No. 32 of 2011

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ORDER

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OLR No.47/2022 is filed seeking for the following reliefs:

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a) Take this report on record.

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b) To permit the Official Liquidator to sell the movable and immovable property of Unit 1 at Bidar by way of public e-auction under the orders of this Hon'ble Court by filling a suitable application in due course.

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and

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c) To pass such order or orders as this Hon'ble Court may deem fit in the circumstances of the case.

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OLR No.60/2022 is filed seeking for the following reliefs:

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a) To tag this OLR with Company Application No.137/2017 and OLR No.41/2022 and hear and pass orders.

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b) to appoint a panel valuer to value the movable and immovable property of the company (in liqn) situated at Unit No.1, No.24, Kolhar, IDA, Bidar and permit the Official Liquidator to incur the valuation charges if any from the funds available to the credit of the company in liquidation.

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And

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c) To pass such order or orders as this Hon'ble Court may deem fit in the circumstances of the case.

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3 - NC: 2023:KHC:46843 CA No. 137 of 2017 IN COP No. 32 of 2011

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CA.No.137/2017 is filed seeking for the following

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reliefs:

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a) Accord the sanction for sale of the factory unit at Bidar and direct the Rabo India Finance Ltd to furnish the document enabling the Official Liquidator to proceed with sale. A valuer from the panel may also be appointed for valuation of the said factory unit.

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1. Direct the Rabio India Finance Ltd to take possession/custody of factory unit a the earliest possible and to pay the liquidation cost incurred by the Official Liquidator till the date of handing over possession and also settle the expense incurred by IFCI Ltd towards watch of the factory unit.

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2. Direct the Rabo India Finance Ltd to appropriate sale proceeds subject to leave of this Hon'ble Court and after depositing workmen's and Employee Provident Fund Organization (EPFO) portion under Section 529 of the Companies Act, 1956.

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and/or

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b) pass such order/orders as may deemed fit and proper in the circumstances of the case.

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It is not in dispute that the official liquidator

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attached to this Court is in possession of the factory unit at Bidar. Respondent No.1-Rabo India Finance Limited in C.A.

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4 - NC: 2023:KHC:46843 CA No. 137 of 2017 IN COP No. 32 of 2011

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No.137/2017 (hereinafter referred to as ‘Rabo’) claims to have first charge over the said property. Pursuant to the meeting that has been held by the official liquidator and the other creditors, it is forthcoming that Rabo does not have any objection for the official liquidator to sell the properties. However, it is their contention that they have first charge over the said property and its dues are entitled to be paid from and out of the sale proceedings before the other dues are considered. It is also the contention of the Rabo that they have charge over the movable items which are located inside the immovable properties. Having regard to the fact that Rabo does not have any objection for the Official Liquidator to sell the properties, it is expedient that Official Liquidator be permitted to sell the immovable and movable properties and adjudicate upon the manner of disbursement of the sale proceeds taking into consideration the claims made by two contesting parties in accordance with law.

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In view of the aforementioned, the following order is passed.

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i) Respondent No.1 in CA.No.137/2017 i.e., Rabo India Finance Limited is directed to handover the title

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5 - NC: 2023:KHC:46843 CA No. 137 of 2017 IN COP No. 32 of 2011

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deeds to enable the Official Liquidator to proceed that the sale of the property.

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ii) The Official Liquidator is permitted to appoint the valuer Sri. Srinivas Setty Badam, H.No.7-6-267, Dharaneda Colony, Near Euro Kids School, Vasavi Nagar Area, Raichur -584103 to value the movable and immovable properties of the Company Liquidation. In the event, the valuer is unable to value the movable properties the Official Liquidator is permitted to appoint a valuer from the list of valuers registered with the Insolvency and Bankruptcy Board of India for the valuation bankruptcy and incur the valuation charges from the funds available to the credit of the Company in Liquidation.

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iii) The Official Liquidator is permitted to sell the movable and immovable properties by way of public auction under the orders of this Court by filing suitable applications periodically after receipt of valuation reports.

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In view of the aforementioned, OLR Nos.47/2022 and 60/2022 and CA.No.137/2017 are disposed of.

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Sd/JUDGE

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PNV List No.: 1 Sl No.: 13

Official Liquidator of v. M/S Rabo India Finance Limited

Case brief

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Official Liquidator of v. M/S Rabo India Finance Limited

Case brief

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