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2022 (8) TMI 1113 - AT - Insolvency and BankruptcySeeking a direction to the Liquidator for release of money realized on the sale of vehicles which were stated to be hypothecated to the Appellant Bank - Section 61 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The documentary evidence on record establishes that the Appellant had entered into a Deed of Hypothecation with the ‘Corporate Debtor’ on 28.01.2019, pursuant to which the charge was registered with the RoC, which describes the charge to be on all vehicle inventory and receivables thereof. There are force in the contention of the Learned Counsel for the Liquidator that in the Books of Account of the ‘Corporate Debtor’ there is no clarity regarding the particulars of each vehicles and the details of its financing and at any given point of time, there would be finance facilities being utilized from different Financial Institutions and the same was being repaid when the receipts came from the actual buyer of the vehicles and hence the Secured Financial Creditors is construed to have a joint charge over the Sale Proceeds as they have collectively relinquished the Security Interest as there is no discernible way to determine the specific inventory financed by them individually. It is seen from the record that the proof of Claim in Form-‘D’ is dated 24.07.2020, whereas the Order of Liquidation was passed, much prior to that on 26.06.2020 and there were no vehicles in existence as on 26.06.2020. Having regard to the fact that, the ‘Corporate Debtor’ had given its unequivocal assent in the CoC Meetings with respect to sale of vehicles during the CIRP Process without any objection, and has not chosen to realize the Security Interest in accordance with Section 52 of the Code, either through the records of Information Utility or RoC and specifically keeping in view that the subject vehicles are already sold and the proceeds from the sale of the vehicles have already been distributed between the Secured Financial Creditors in proportion to their ‘debt’, and the Appellant has already received its share of the proceeds on 01.03.2021 after providing an Affidavit of undertaking dated 23.02.2021, the Appellant is estopped from claiming any part over the asset which has already been sold and therefore we are of the considered view that the Adjudicating Authority has rightly observed the Sale Proceeds ought to be distributed as provided for under Section 53 of the Code. Appeal dismissed.
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