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2022 (6) TMI 721 - Insolvency & Bankruptcy
Head Note / Extract:
Direction for maintaining of ‘status quo’ in relation to the liquidation process of the Corporate Debtor - whether the Respondent violated Order of this Bench dated 20.07.2021 as alleged by the Applicant? - HELD THAT:- After filing the Contempt Application dated 02.08.2021 this Tribunal had afforded opportunity to the Respondent to file their Response to the Contempt Application and the Contempt Application has been heard both sides and reserve for Orders. This Tribunal extended the Interim Order dated 20th July, 2021 till 05.07.2022. The Appeal filed by the Applicant on 14.07.2021 and this Tribunal passed Status Quo Order on 20th July, 2021 much later to handing over the possession of property and issuance of sale certificate to the auction purchaser on 03.06.2021. Moreover, the Applicant has not made the auction purchaser a party to the proceedings before this Tribunal. This Tribunal passed the status quo order on 20th July, 2021 and the Respondent/ Liquidator stated that he has implemented the Order of this Tribunal dated 20th July, 2021 with respect to Liquidation Process from the date of passing of status quo order - Further, it is sated that the Respondent/ Liquidator does not have possession or control over the disposed asset of the Corporate Debtor. The Appeal has been filed much later to the sale certificate issued to the auction purchaser and the Applicant has not impleaded the auction purchaser as a party to the proceedings and the status quo order will not be applicable to the auction purchaser and this Tribunal cannot desist the auction purchaser from proceeding with the property which he is in possession in accordance with law, therefore, this Tribunal is of the view that the Respondent has not violated the order of this Tribunal dated 20th July, 2021 nor committed any contempt of this Tribunal - this Tribunal comes with a resultant and irrefutable conclusion that there is no disobedience of the Order of this Tribunal and the Contempt Application filed by the Applicant is frivolous and wasting the precious time of this Tribunal. Contempt application dismissed.