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2022 (2) TMI 1177 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHISeeking approval of closure of the liquidation process - directions to Respondent No. 2 to make the payment of claim - Regulation 45 (3)(a) read with Regulation 32A and 33(1) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 - HELD THAT:- It is an admitted fact that the CIRP process was being conducted, since there was no Resolution Plan received till 15.04.2019, the Committee of Creditors in its meeting held on 25.04.2019 passed resolution with 100% voting rights approving liquidation of the Respondent No. 1 Company/Corporate Debtor. The Ld. Adjudicating Authority passed the liquidation order vide its order dated 31.05.2019. The valuation reports were obtained which showed the fair value at ₹ 24.63 crores and liquidation value of the Corporate Debtor/Respondent No. 1 Company at ₹ 18.45 crores - The Respondent No. 2 has already remitted the entire bid value of ₹ 18,45,86,646/- under e-auction process and the Respondent No. 2 has acquired all its assets and liabilities but through the impugned order dated 18.05.2020 passed by Ld. Adjudicating Authority has rejected the prayer for directions to Respondent No. 2 to make the payment of claim to the Applicant (Appellant herein). The sale as a ‘going concern’ or ‘as is where is whatever there is’ basis can be only with assets and not liabilities. As per the Regulation 32A of IBBI (Liquidation Process) Regulations, 2016, the Liquidator is authorized to sell a company on a ‘going concern’ basis - the Oriental Bank of Commerce is the sole Financial Creditor and confirmed relinquishment of its security interest over Respondent No. 1, current and non-current assets, by its email dated 05.10.2019 sent to Respondent No. 3 and the Oriental Bank of Commerce higher in priority to all the 8 Operational Creditors of Respondent No. 1 including the Appellant. So, they paid the entire amount of INR 18,45,86,646 towards 13.17% of the admitted debt to Respondent No. 1 sole Financial Creditor. There is no merit in the Appeal. The Appeal is hereby dismissed.
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