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2022 (6) TMI 715 - NATIONAL COMPANY LAW TRIBUNAL , CHANDIGARH BENCHValidity of proposed private sale conducted by the liquidator - mode of sale - HELD THAT:- From the facts of the case in hand, it is observed that the applicant-Ex Promoters have not participated in the auctions on 28.08.2019, 27.09.2019, 18.10.2019 and 21.09.2020. It is also observed that the applicant has failed to submit any bid for the auction dated 27.01.2021 in compliance with the direction of this Tribunal dated 25.01.2021. These responses or these lack of responses from the applicants cast serious doubt over their actual intention with regard to the bidding of the corporate debtor. Their subsequent offer of approximately Rs.80 Crores falls way below the reserve price of the last failed auction on 27.01.2021 at Rs.96.02 Crores - The applicant has failed to make out a case that there has been any infringement of these Sections and Regulations on the part of the Liquidator - Application dismissed. Seeking directions to be issued to liquidator for the sale of corporate debtor as a going concern and to consider the bid of the applicant - HELD THAT:- The applicant’s plea that a different approach should be adopted for MSME is also not tenable as the applicants are clearly hit by the provisions of Section 29-A of the Code. In any case, the period for issuing any direction to the Liquidator to sell the corporate debtor as a going concern is over as private sale has already taken place in compliance with the provisions of the relevant Sections of the Code and in the related Regulations made thereunder. No case has been made out by the applicants-Ex-Promoters that there has been any violation of the provisions of the Code in the private sale effected by the Liquidator - Application dismissed. Seeking to issue necessary direction to the Liquidator to sell the Corporate Debtor i.e. M/s Supreme Tex Mart Limited (STML) as a going concern in liquidation - HELD THAT:- As clarified in the order pertaining to the earlier two IA Nos.227/2021 and IA No.228/2021, private sale has already taken place in the present case in compliance with the provisions of the relevant provisions of the Code and Regulations made thereunder. It is also seen from the records that the Liquidator has made adequate efforts and attempts to sell the corporate debtor as a going concern through open public auction. No case has been made out in the present application that there has been any short-coming on the part of the Liquidator in this regard - there is no merits in the application and the same is dismissed. Seeking to constitute a Consultation Committee of stakeholders as required under Regulation 31-A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 - seeking restraint on Liquidator from taking any decision with regard to sale of liquidation of estate of the corporate debtor - HELD THAT:- The Insolvency and Bankruptcy Board of India, in exercise of the powers conferred by Clause (t) of sub-Section (1) of Section 196 read with Section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) has introduced Regulation 31A in the Liquidation Process Regulation, 2016. It is also noted that there is no mention of the retrospective application of the provisions in the relevant notification. It is also settled law that all laws are presumed to be prospective unless the Legislature unequivocally expresses its intent for the operation of such provisions retrospectively - Though, in the present case, there is a change in the present Liquidator who was was appointed w.e.f. 01.11.2019, i.e. after the introduction of Regulation 31-A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 in the statute book, but the applicability of provisions relates to the date of liquidation order and not to the date of appointment of the new Liquidator. Furthermore, it is noted that the liquidation process is a time-bound process and any delay caused by introduction of new procedure would result in huge depreciation of the assets under liquidation leading to a lesser recovery of public money owed to the Public Sector Banks. Any such interpretation resulting in delay will be against the objectives of the Code. Regulation 31A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 is not with retrospective effect - Application dismissed. Seeking issuance of appropriate directions to the Liquidator to immediately constitute Consultation Committee of stakeholders as required under Regulation 31A of the IBBI (Liquidation Process) Regulations, 2016 - HELD THAT:- The provisions of Regulation 31A of the IBBI (Liquidation Process) Regulations, 2016 are not with retrospective effect. Thus in the present case, Stakeholder Consultation Committee (SCC) cannot be allowed to be constituted - Application dismissed.
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