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2019 (3) TMI 1338 - Tri - Insolvency and BankruptcyCorporate insolvency process - Whether the proceedings pending under the Tamil Nadu Protection of Interest of Depositors Act, 1997 (TNPID Act) can be taken over by the Resolution Professional under the Provisions of the Insolvency and Bankruptcy code, 2016? - HELD THAT:- On completion of the maximum period of time provided under Section 12, if no resolution plan is received by the Adjudicating Authority under Section 30(6) or it rejects the resolution plan under Section 31 for the non- compliance of the requirements specified under Section 30(2) of the IBC, 2016, then liquidation order has to be passed against the Corporate Debtor u/s 33 of the IBC, 2016 and in the process of the liquidation, the Assets of the Company are to be disposed of in order to distribute the proceeds among the stakeholders as per the waterfall mechanism provided under Section 53 of the IBC, 2016. In short, a comprehensive scheme is available under the IBC, 2016 for the companies which fail to pay its debt to the creditors. In view of the legal position stated above, the IBC, 2016 being a special legislation and by virtue of Section 238 of the IBC, 2016, overrides the provisions of TNPID Act. This view is fortified by the proposition settled in the matter of M/S. Aryarup Tourism Club Resorts Private Limited (in Liquidation) [2017 (6) TMI 608 - BOMBAY HIGH COURT] wherein it has been held that the powers of the competent authority appointed under the Maharashtra Protection of Interests of Depositors (in Financial Establishments) Act, 1999 (MPID Act) and the MPID Court does not supersede or prevail upon the powers of the Official liquidator or of the Company Court under the provision of the Companies Act. Therefore, in the light of the provisions of the IBC, 2016 the proceedings initiated under TNPID Act can legally be taken over by the Resolution Professional in relation to the Corporate Debtor viz. Thiripura Chits Private Limited. Accordingly, the issue framed herein above is answered in affirmative. The competent authority and the investigation officer(s) under TNPID Act including Deputy Superintend Police, Economic offences wing-Il, are directed to hand over all the records of the Corporate Debtor viz. Thiripura Chits Private Limited, including books of Account along with chits security deposits amounting to ₹ 2.71 Crores as mentioned above, to the Resolution Professional viz. J. Manivannan, within a period of two weeks after receiving the certified copy of this order. The Resolution Professional is directed to obtain a certified copy of this order and to submit to the competent authorities and the investigating officers of the Police including Deputy Superintendent of Police, Economic offences wing-II for record and compliance. However, it is made clear that the Deputy Superintendent of Police, Economic offences wing-II may retain the Xerox copies of the record, original will be handed over to the Resolution Professional, for taking appropriate action against the accused persons in accordance with law.
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