Disposed

M/S Southern Energy Investments Pvt. Ltd. v. Liquidator of Southern Batteries Pvt. Ltd.

Karnataka HC22 Nov 2023WP/16585/2023

Case brief

AI extract

What is this about?

Petitioner sought to quash an e-auction notice and direct implementation of a Resolution Plan under IBC. Court disposed of the writ petition, maintaining interim protection for two weeks to allow exhaustion of remedies before the NCLT.

What did the court decide?

Interim protection granted for two weeks for petitioner to approach NCLT for remedy; interim order to remain in force.

M/S Southern Energy Investments Pvt. Ltd. Vs… — Insolvency and Bankruptcy | Karnataka HC (2023)

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1 - NC: 2023:KHC:42139 WP No. 16585 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 22^ND DAY OF NOVEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 16585 OF 2023 (GM-RES)

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BETWEEN:

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M/S SOUTHERN ENERGY INVESTMENTS PVT. LTD. OFF/AT NO.561, 2ND FLOOR, SRINIDHI, WATER TANK ROAD, KATHRIGUPPE, BANASHANKARI 3RD STAGE, BENGALURU-560085 REP. BY ITS DIRECTOR SRI. R SUDARSHAN S/O PILLAI AGED ABOUT 62 YEARS, SENIOR CITIZEN BENEFIT NOT CLAIMED

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…PETITIONER

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(BY SRI. SUYOG HERELE E., ADVOCATE)

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Digitally signed by PADMAVATHI B K Location: HIGH COURT OF KARNATAKA

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AND:

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LIQUIDATOR OF SOUTHERN BATTERIES PVT. LTD. MR. KANEKAL CHANDRASEKHAR, PLOT NO.30, KIADB, INDUSTRIAL AREA, BOMMASANDRA, BENGALURU-560099.

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…RESPONDENT (BY SRI. PRADEEP NAYAK, ADV. AND SMT. SANJANA MURALEEDHARA, ADV.)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH / SET ASIDE THE IMPUGNED E-AUCTION NOTICE DATED 03/07/2023 PRODUCED AT ANNEXURE-A WITH RESPECT TO THE SALE OF THE CORPORATE DEBTORS ASSETS AND ALL FURTHER

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NC: 2023:KHC:42139 WP No. 16585 of 2023

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PROCEEDINGS PURSUANT THERETO. DIRECTING THE RESPONDENT TO CONSIDER PROPOSAL OF THE PETITIONER TO INFUSE THE FUNDS AND SUCCESSFULLY IMPLEMENT THE RESOLUTION PLAN.

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

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ORDER

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The petitioner is before this Court seeking the following prayer:

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" PRAYER

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WHEREFORE, the Petitioner above named most respectfully and humbly prays that this Hon'ble Court may kindly be pleased to;

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i) Issue a Writ in the nature of Certiorari and quash / set aside the Impugned e-auction notice dated 03.07.2023 produced at Annexure-A with respect to the sale of the Corporate Debtor's assets and all further proceedings pursuant thereto;

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ii) Issue a Writ of Mandamus or Pass any other Orders directing the Respondent to consider proposal of the Petitioner to infuse the funds and successfully implement the Resolution Plan.

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iii) Issue any Writ, direction, or pass any other Order(s) / Relief(s) as this Hon'ble Court may deems fit, in the interest of justice and equity."

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3 - NC: 2023:KHC:42139 WP No. 16585 of 2023

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Heard the learned counsel Sri.Suyog Herele E., appearing for the petitioner and the learned counsel Sri.Pradeep Nayak and Smt.Sanjana Muraleedhara, appearing for the respondent.

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The petitioner claims to have made an application before the National Company Law Tribunal, where proceedings were taken up by the respondent against the corporate debtor. The proceedings have culminated in drawing up of a resolution plan.

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Learned counsel appearing for the petitioner submits that he has filed an application before the National Company Law Tribunal about two years ago for implementation of the resolution plan but has faltered on making any payment in terms of resolution plan.

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In the light of the said circumstance under Section 33 of the Insolvency and Bankruptcy Code, 2016 (IBC), the Company has gone into liquidation. It is at that juncture the petitioner has knocked at the doors of this Court. In the light of the entire proceedings to be agitated before the National Company Law Tribunal, reserving liberty to the petitioner to

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NC: 2023:KHC:42139 WP No. 16585 of 2023

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avail of such remedy, as is available in law, I deem it appropriate to dispose the petition and hence, the petition stands disposed.

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In the light of the interim order subsisting as on date, the same shall continue for a period of two weeks, till the petitioner would avail of such remedy, as is available in law.

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In the event, the petitioner would not avail the remedy before the appropriate forum, before the expiry of two weeks, the interim protection subsisting and continued by this Court would stand automatically vacated.

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The learned counsel for the respondent at this juncture would submit that Rs.2.5 lakhs was directed to be deposited by this Court for the auction expenditure.

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The same shall be transferred to the respondent - liquidator.

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Ordered accordingly.

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Sd/JUDGE

M/S Southern Energy Investments Pvt. Ltd. v. Liquidator of Southern Batteries Pvt. Ltd.

Case brief

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M/S Southern Energy Investments Pvt. Ltd. v. Liquidator of Southern Batteries Pvt. Ltd.

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