Allowed

In the matter of Dolphin Marine Foods and Processors (India) Pvt. Ltd. I.A. 2508 of 2022 in Cp No. 1352 of 2020

NCLT19 Jan 2023

Case brief

AI extract

What is this about?

An application under Section 60(5) of the Insolvency and Bankruptcy Code was filed seeking directions for the renewal of the Corporate Debtor's factory license. The NCLAT directed the Joint Director Industrial Safety & Health to process the renewal and ordered the former director to cooperate.

What did the court decide?

Directed Respondent 1 to process renewal; Directed Respondent 2 to execute acceptance letter and cooperate.

In the matter of Dolphin Marine Foods and Processors… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL

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COURT-V, MUMBAI BENCH

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Under Section 60 (5), of the Insolvency and Bankruptcy Code, Read with Rule 11 of the National Company Law Tribunal Rules, 2016

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I.A. 2508 OF 2022 IN

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CP No. 1352 OF 2020

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Mahesh Chand Gupta

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(Resolution Professional of Dolphin Marine Foods and Processors (India) Pvt. Ltd.)

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…… Applicant

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Versus

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1. The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra

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……. Respondent No. 1

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2. Rosario D’souza (Suspended Director of the Corporate Debtor)

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.……. Respondent No. 2

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In the matter between

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Union Bank of India

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……… Financial Creditor

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Versus

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Dolphin Marine Foods and Processors (India) Pvt. Ltd.

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………. Corporate Debtor

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Order Reserved on: 12.12.2022

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Order Pronounced on: 19.01.2023

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Coram:

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Hon’ble Shri Kuldip Kumar Kareer, Member (Judicial) Hon’ble Smt. Anuradha Sanjay Bhatia, Member (Technical)

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Appearance :

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For the Applicant: Adv Nausher Kohli a/w Adv Amey Hadwale and Adv Geeta Lundwani

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Page 1 of 5

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I.A. 2508 OF 2022 IN CP No. 1352 OF 2020

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Per: Anuradha Sanjay Bhatia, Member (Technical)

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ORDER

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The above captioned I.A. 2508 of 2022 is filed by Mr. Mahesh Chand Gupta, Resolution Professional of Dolphin Marine Foods and Processors (India) Pvt. Ltd. under Section 60(5) of the Insolvency and Bankruptcy Code 2016 (“Code”) seeking following reliefs:

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a. Respondent No. 1, The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra, be directed to not take any coercive/ adverse actions against the Resolution Professional and/ or the Corporate Debtor.

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b. To direct the Respondent No. 2 i.e. the erstwhile Director of the Corporate Debtor to execute the acceptance letter as the Occupier of the Corporate Debtor and provide necessary cooperation wherever necessary for the purpose of renewal of the factory license.

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c. to direct the Respondent No. 1, The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra to consider the Application/ Form 1 filed by the Applicant/ Resolution Professional on behalf of the occupier and to grant the renewal of the factory license.

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The Applicant submits that the Corporate Debtor is in the business of Processing and Exporting Sea Food products and possess a Factory for the running of its business. The said factory has plants such as Cold Storage, Blast Freezers, Grading Machines, etc located at Plot No. M-13, MIDC Taloja, Taluka: Panvel, District: Raigad, 410208. The License of the said factory of the Corporate Debtor, bearing number 122001020400367 expired on 31.12.2021 and it is subject to renewal as per Section 6 and 7 of the Factories Act, 1948 read with rule 3, 5, 8, 11 and 14. Accordingly, an online application for renewal of license along with Form 1 was submitted on 05.01.2022 and an acknowledgment vide an Email dated 05.01.2022 was received bearing application ID Number 100001692215.

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The Applicant further submits that the Respondent No. 1 i.e. The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra,

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Page 2 of 5

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I.A. 2508 OF 2022 IN CP No. 1352 OF 2020

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vide its email dated 11.04.2022 rejected the renewal application with the following remarks (i) Form-I to be signed by Occupier (ii) Proof of Occupier/ Board Resolution copy and acceptance letter by Occupier not uploaded (iii) POSH Committee not uploaded.

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The Applicant submit that the CoC in its meeting dated 13.04.2022 had passed a resolution authorising the erstwhile Director, Mr. Rosario Luka D’souza, the Respondent No. 2 to be appointed as “The Occupier” of the Corporate Debtor and authorised the Resolution Professional/ Applicant to take necessary steps for the renewal of the factory license.

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The Applicant further submit that the Respondent No. 2 i.e. Mr. Rosario D’souza, signed Form I and accordingly, the applicant uploaded the required documents namely, (i) Form-I signed by Respondent No. 2 (ii) CoC Resolution copy (iii) POSH Committee Constitution, through the online Portal of the Department.

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On the basis of rejection by the Respondent No. 1, the Applicant had approached the Respondent No. 2, to execute the acceptance letter as he was authorised to act as the Occupier. However, Respondent No. 2 did not pay any heed to the request of the Applicant even after various emails and reminder. Pursuant to the above, the Respondent No. 2 vide its email dated 25.07.2022, refused to execute the acceptance letter.

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Thereafter, the Respondent No. 1 vide its email dated 15.07.2022 rejected the renewal application form again with remarks (i) Proof of Occupier/ Board Resolution copy and acceptance letter by Occupier not uploaded (ii) POSH Committee uploaded is not as per the act.

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The Applicant vide its letter and email dated 23.07.2022 had again clarified the matter to the Respondent No. 1 and requested him to renew the licence. Thereafter, the Applicant wrote a letter dated 13.08.2022 to the Joint Director Industrial Safety & Health, Raigad district, clarifying all the reasons for which the Application was rejected. However, despite the receipt

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Page 3 of 5

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I.A. 2508 OF 2022 IN CP No. 1352 OF 2020

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of letter and Email, the Respondent No. 1 has neither renewed the factory license nor has replied to the letter. Hence, this Application.

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Findings:-

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Heard the Counsel appearing for the Applicant, Counsel appearing for the Respondent No. 1 and Respondent No. 2 and perused the records.

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The Bench is of the considered view that an online application dated 05.01.2022 was submitted by the Applicant (the Resolution Professional) to the Respondent No. 1 (The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra), for the renewal of license of the factory located at Plot No. M-13, MIDC Taloja, Taluka: Panvel, District: Raigad, 410208. The Application was rejected by the Respondent No. 1, vide its email dated 11.04.2022 with the following remarks (i) Form-I to be signed by Occupier (ii) Proof of Occupier/ Board Resolution copy and acceptance letter by Occupier not uploaded (iii) POSH Committee not uploaded. The Application was again Rejected by the Respondent No. 1, vide its email dated 15.07.2022, with the following remarks (i) Proof of Occupier/ Board Resolution copy and acceptance letter by Occupier not uploaded (ii) POSH Committee uploaded is not as per the act.

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It is observed that the CoC in its meeting dated 13.04.2022 had passed a Resolution authorising the erstwhile Director, Mr. Rosario Luka D’souza, the Respondent No. 2 to be appointed as “The Occupier” of the Corporate Debtor. Mr. Rosario Luka D’souza being authorised as the Occupier is under an obligation to facilitate the Resolution Professional for the renewal of the factory license and provide him the necessary documents/letters in obtaining renewal license of the factory.

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This Bench is of the considered view that the queries raised by the Respondent No. 1 (The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra) in its remarks section, along with the filing

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Page 4 of 5

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I.A. 2508 OF 2022 IN CP No. 1352 OF 2020

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of appropriate letters are not resolved. Therefore, the approvals from the Appropriate Authority for the renewal of the License is pending. The Joint Director Industrial Safety & Health, Raigad Government of Maharashtra is directed to process the renewal of license in accordance with law. And in terms of prayer clause (b), Mr. Rosario Luka D’souza, the Respondent No. 2 is directed to co-operate the Resolution Professional for the renewal of the factory license and provide him the documents/letters necessary in obtaining the renewal of license of the factory.

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Accordingly, IA 2508/2022, in terms of prayer clause (a), (b) and (c) are allowed and disposed of.

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Sd/-

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Sd/-

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ANURADHA SANJAY BHATIA KULDIP KUMAR KAREER Member (Technical) Member (Judicial)

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In the matter of Dolphin Marine Foods and Processors (India) Pvt. Ltd. I.A. 2508 of 2022 in Cp No. 1352 of 2020

Case brief

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In the matter of Dolphin Marine Foods and Processors (India) Pvt. Ltd. I.A. 2508 of 2022 in Cp No. 1352 of 2020

Case brief

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