Allowed

In the matter of Space Matrix Private Limited [Ia No. 1168 of 2023 in C.P. (Ib) No. 1560-KB-2018]

NCLT5 Mar 2024IA No. 1168 of 2023 in C.P. (IB) No. 1560-KB-2018

Case brief

AI extract

What is this about?

In an insolvency application, the NCLT Kolkata Bench allowed an extension of the liquidation period for Space Matrix Private Limited by six months from August 2, 2023, to facilitate asset sales and distribute proceeds to stakeholders.

What did the court decide?

Extension of the liquidation period by six months from February 2, 2023, until August 2, 2023.

In the matter of Space Matrix Private Limited [Ia No… — Insolvency and Bankruptcy | NCLT (2024)

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

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IA No. 1168 of 2023

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C.P. (IB) No. 1560/KB/2018

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An application under the Insolvency and Bankruptcy Code, 2016, and IBBI (Liquidation Process) Regulations, 2016.

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And

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An Application under Regulation 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016.

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In the matter of:

Union Bank of India

…FINANCIAL CREDITOR

Versus

Space Matrix Private Limited

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...CORPORATE DEBTOR

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And

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In the matter of:

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Soumitra Lahiri, Insolvency Professional, Registration Number: IBBI/IPA-001/IPRegistration Number: P00734/2017-2018/11232, of Flat 14D & E Tower -32. Genexx Valley, Joka, Diamond Harbour Road, Kolkata – 700104. (Acting as Liquidator of Space Matrix Private Limited).

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...LIQUIDATOR/APPLICANT

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In the matter of:

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Union Bank of India

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…FINANCIAL CREDITOR

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Space Matrix Private Limited 3. Soumitra Lahiri, Insolvency Professional, (Acting Liquidator of Space Matrix Private Limited)

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...CORPORATE DEBTOR

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...LIQUIDATOR/ APPLICANT

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Date of pronouncement of order: 05.03.2024

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Page 1 of 5

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

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IA No. 1168 of 2023 C.P. (IB) No. 1560/KB/2018

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CORAM:

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SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL) SHRI D. ARVIND, HON’BLE MEMBER (TECHNICAL)

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Appearances (via Video Conferencing/Physical):

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Mr. Mayukh Roy, Adv. Mr. Vikram Wadehra, Adv. Mr. Soumitra Lahiri, Adv.	] For the Liqidator ] ]
Ms. Sreenita Thaker, Adv. Ms. Sneha Singhania, Adv.	] For the SCC ]
Mr. Vipul Kundalia, Adv. Mr. Abhradip Maity, Adv.	] For Customs Authority ]
Mr. Mainak Bose, Adv. Mr. Sanawal Tibrewal, Adv.	] For the Suspended Management ]
Mr. Krishnika Chatterjee, Adv.	] For the Falta Special Economic Zone ] in IA(I.B.C)/320(KB)2021

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O R D E R

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Per: Bidisha Banerjee, Member (Judicial)

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1. Heard. Learned Counsel for the Financial Creditor present. Ld. Counsel for the Corporate Debtor present. Ld. Counsel for the Liquidator present.

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2. The Corporate Debtor was admitted that under CIRP vide order dated 28^th August 2019, wherein Mr. Sanjai Kumar Gupta, Insolvency Professional having registration number: IBBI/IPA- 001/ IP-P00592/2017-18/11045 was appointed as Interim Resolution Professional. The Committee of Creditors vide its third meeting held on 14^th November 2019 in accordance with Section 22 of Insolvency and Bankruptcy Code, 2016 confirmed appointment of the said Mr. Sanjai Kumar Gupta as the Resolution Professional.

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Page 2 of 5

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

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IA No. 1168 of 2023 C.P. (IB) No. 1560/KB/2018

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3. In the fifth meeting of the committee of Creditors, held on 14^th January, 2020 the Committee of Creditors, by 86% majority votes resolved to liquidate the Corporate Debtor and vide order dated 24^th February, 2020 the Kolkata Bench of Hon’ble National Company Law Tribunal ordered liquidation of the Corporate Debtor and appointed the Applicant, an Insolvency Professional, as the Liquidator in the matter of Space Matrix Private Limited.

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4. It is admitted that a public announcement was made in ‘Form B’ of Schedule II in two newspapers namely “Financial Express” (English Daily) and “Aajkaal” (Bengali daily), both dated 27^th February 2020 having circulation in West Bengal for inviting proof of claims from the stakeholders of the Corporate Debtor in specified Forms and the same was also informed to the Insolvency and Bankruptcy Board of India.

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5. It is admitted that the Applicant prepared and filed the preliminary report as per Regulation 13 of the Regulations on 3^rd June 2020 and e-filed the Preliminary Report on 30^th September, 2020. 6. It is stated that the Applicant has conducted e-auction of machineries stored at Jalan Industrial Complex, Domjur, Kolkata Mumbai Highway, District Howrah on 13^th October, 2020 and with the help of CARS24 could sell Grand i10 car the Corporate Debtor which was duly done with the approval of the Stakeholders’ Consultation Committee and reported to Hon’ble Adjudicating Authority in compliance with Regulation 36 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

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7. It is stated that the Adjudicating Authority vide order dated 25^th March, 2021 permitted exclusion of 159 days (from 25^th March, 2020 to 31^st August 2020) being time lost due to countrywide COVID 19 lockdowns. Considering the exclusion, the present liquidation period, under SubRegulation (1) of Regulation 44 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 will end on 2^nd August 2021.

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Page 3 of 5

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

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IA No. 1168 of 2023 C.P. (IB) No. 1560/KB/2018

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Further, in terms of the order dated 16^th August 2021, the Hon’ble Adjudicating Authority extended the liquidation period by one year up to 1^st August 2022.

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8. It is admitted that the Applicant, subsequently, filed another application, being I.A. No. 709/KB/2022 seeking extension to the period of such liquidation by a period of one year. The Bench considering such submissions made and the impediments being faced by the applicant in carrying out the process, vide order dated 29^th July, 2022 extended the period of liquidation by a period of 6 months from date. Subsequent thereto, the Applicant filed another application, being I.A. No.228/KB/2023, which upon being considered extended the period of liquidation by another period of 6(six) months from 2^nd February 2023, in terms of the order dated 18^th April, 2023.

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9. It is stated that vide order dated 18^th April, 2023 the Adjudicating Authority asked Falta Special Economic Zone Authority to grant possession to the Liquidator of the premises of the Corporate Debtor, which order was duly complied with and the Falta Special Economic Zone Authority agreed to grant possession to the Applicant for a period of three months. 10. It is stated that the Liquidator, with the approval of the Stakeholders’ Consultation Committee at 22^nd meeting held on 26^th May, 2023 appointed two valuers to conduct valuation under Sub Regulation (2) of Regulation 35 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The registered valuers submitted their reports on 24^th June 2023 and based thereon, the liquidator has filed a revised Asset Memorandum in compliance with regulation 34 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 11. It is stated that the Applicant, in terms of the instant application is seeking extension of the liquidation period by six months, with effect from 2^nd August, 2023 under Regulation 44(2) Insolvency and Bankruptcy Board

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

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IA No. 1168 of 2023 C.P. (IB) No. 1560/KB/2018

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of India (Liquidation Process) Regulations, 2016. The liquidation period will end on 31^st January, 2024.

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12. This application is, therefore, filed seeking the following reliefs: The Applicant, being the Liquidator to the Corporate Debtor, in terms of the instant application, is seeking extension of the liquidation period by one year, with effect from 2^nd August, 2023, under Regulation 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, when the liquidation period will stand extended till 31^st January, 2024. An extension is being sought to enable the Applicant to complete e-auctioning of the assets and distribute proceeds thereof to the stakeholders. Furthermore, petition for avoidance transactions involving substantial sum is also pending hearing before the Hon'ble Adjudicating Authority.

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13. In view of the facts stated and on being satisfied with the grounds to seek extension of the liquidation period till 31.03.2024.

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14. I.A.(IBC)1168/KB/2023 allowed and disposed of.

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D. Arvind

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Member (Technical)

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Bidisha Banerjee

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Member (Judicial)