Allowed

In the matter of Divine Alloys & Power Co. Limited Ia (Ib) No.210-KB-2023 in Company Petition (Ib) No. 1412-KB-2018

NCLT12 May 2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application by the Liquidator to extend the liquidation period by one year and grant an additional 90 days to sell the corporate debtor as a going concern under the IBBI Liquidation Process Regulations to maximize asset value.

What did the court decide?

Allowed extension of liquidation period by one year and extension of 90 days to sell the Corporate Debtor as a going concern.

In the matter of Divine Alloys & Power Co. Limited Ia… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL , KOLKATA BENCH (Court-II)

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KOLKATA

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IA (IB) No.210 /KB/2023 IN

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Company Petition (IB) No. 1412/KB/2018

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An application under section 60(5) and Section 35 (1) (n) of the Insolvency and Bankruptcy Code, 2016 and Regulation 44 (2) of the IBBI (Liquidation Process) Regulations, 2016.

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In the matter of

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Punjab National Bank … Financial Creditor -Versus- Divine Alloys and Power Co Limited …Corporate Debtor

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AND

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In the matter of

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Rajesh Kumar Agrawal, Liquidator of Divine Alloys and Power Co Limited

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… Applicant

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Date of hearing : 01/02/2023

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Order Pronounced on : 12/05/2023

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Coram:

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Mr. Bidisha Banerjee : Member (Judicial) Mr. Balraj Joshi : Member (Technical)

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Counsels appeared through Video Conference

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Mr.S.Mitra, Adv. ] For the Liquidator

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IN THE NATIONAL COMPANY LAW TRIBUNAL, KOLKATA BENCH, KOLKATA

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I.A (IB) No.210 /KB/2023 IN C. P. (IB) No. 1412/KB/2018

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Mr.Rajesh Kumar Agrawal, ] Liquidator in person

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O R D E R

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Per: Balraj Joshi, Member (Technical )

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IA (IB) No. 210/KB/2023 is an application filed by Liquidator Sh. Rajesh Kumar Agrawal, under section 60(5) and Section 35 (1) (n) of the Insolvency and Bankruptcy Code, 2016 and Regulation 44 (2) of the IBBI (Liquidation Process) Regulations, 2016 seeking following reliefs:-

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a. To allow the extension by one year of the liquidation period under Regulation 44(2) of the IBBI (Liquidation Process) Regulations, 2016 from the date of pronouncement of order.

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b. Pass an order allowing the Applicant to conduct the sale of the Corporate Debtor as a Going Concern under Regulation 32 and 32A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and other applicable provision within a period of 90 days of the pronouncement of this order.

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c. Such further and/or other order or orders as this Tribunal may deem fit and proper.

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It has been stated in the application that an extension of one year is required for selling of CD as a Going Concern. The matter has come up after discussion in the 20^th Stakeholders Consultation Committee meeting, the minutes thereof are enclosed as Annexure-C of the application, wherein it has been stated that the Stakeholders discussed and decided to sell the CD as a going concern, so that the value of the CD can be maximized. However in order to do so, an extension of 90 days period for sale of the CD as a going concern is necessitated, as required under Reg 32A(4) of the IBBI liquidation process regulations.

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Page 2 of 3

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IN THE NATIONAL COMPANY LAW TRIBUNAL, KOLKATA BENCH, KOLKATA

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I.A (IB) No.210 /KB/2023 IN C. P. (IB) No. 1412/KB/2018

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In view of the above, IA No.210 of 2023 has been preferred seeking extension of the liquidation period of one year and seeking extension of 90 days for selling the CD as a going concern under Regulation 32A.

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It has been averred that even though this process has already been taken up once. However, the sale could not go through as the successful Auction Purchaser could not deposit the requisite money in time, thus leading to forfeiture of its EMD.

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In view of the above, it is apparent that there is strong possibility of the CD being sold as a going concern which is likely to maximize the value as compared to plain liquidation sale and accordingly, we allow this application on the relief as sought in para 36 of the application.

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