Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2018 (2) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 985 - Tri - Insolvency and BankruptcyInitiating Corporate Insolvency Resolution Process - Held that:- In the case in hand, it is an undisputed fact that Corporate Debtor is a going concern and has about 1178 employees and workmen on its Roll. RP has also admitted that corporate debtor is a going concern. Section 33(7) also provides that order of liquidation shall be deemed to be a notice of discharge to the officers, employees and workers of the Corporate Debtor, except when the business of the Corporate Debtor is continued during the liquidation process. Regulation 32 also provides provision for the manner of sale during liquidation process which shows that it can be by way of slump sale and slump sale means the transfer of an undertaking as a whole. In the light of the order of the Hon’ble Supreme Court in case of Allahabad Bank (2000 (9) TMI 931 - SUPREME COURT OF INDIA), we pass following orders in addition to the orders made above. (1) The Liquidator shall try to dispose off the Corporate Debtor company as a going concern after publication of notice in newspaper with the reserve price which shall be equal to the total debt amount including interest and maximum period applicable for trying the sale of the Corporate Debtor as a going concern will be only three months from the date of the order, if the process of sale as a going concern is failed during this period, then process of the sale of the assets of the company will be according to the provisions of sale of asset of the Corporate Debtor prescribed under section 33, Chapter VI of the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016. In case it is not concluded within this period, the order of this Court directing the sale of the company as a going concern shall stand set aside and corporate debtor to be liquidated in the manner as laid down in Chapter III of the Liquidation Process provided in Insolvency & Bankruptcy Code. (2) The Liquidator is further directed to issue a public announcement stating that the Corporate Debtor is in liquidation. (3) It is also ordered that copy of the order be sent to the Registrar of Companies with which the Corporate Debtor is registered. It is further declared that subject to provision of section 52, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor. Provided that a suit or other legal proceedings may be instituted by the Liquidator on behalf of the Corporate Debtor, with the prior approval of the Adjudicating Authority. Above provision shall not apply to legal proceedings about such transactions, as may be notified by the Central Government in consultation with any Financial Sector Regulators.
|