TMI Blog2019 (7) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(c) of the Tea Act, 1953. From the finding of the Hon ble Supreme Court decision in SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. [ 2019 (1) TMI 1508 - SUPREME COURT] it is clear that the Corporate Insolvency Resolution Process while allows a resolution process but liquidation is not desirable under the I B Code. Section 16G(1)(c) relates to winding up and on the other hand Section 9 of the I B Code application filed is not a proceeding for winding up but for initiation of Corporate Insolvency Resolution Process to ensure revival and continuation of the Corporate Debtor by protecting the Corporate Debtor from its own management and from corporate debt by liquidation. Section 9 of Insolvency and Bankruptcy Code occupies different field than Section 16G(1) of the Tea Act, 1953. For filing an application under Section 9 against Tea Company under the management of the different board, no permission of the Central Government is required in terms of Section 16G(1) of the Tea Act, 1953 - the impugned order is set aside and case remitted back to the Adjudicating Authority, Kolkata Bench, Kolkata to pass appropriate order under Section 9 of the I B Code ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ea industry. The Central Government has taken over the control of the Tea Industry. Reliance has been placed on the Notification issued by the Central Government on 28th January, 2016 authorising the Tea Board to take over the management and control of 7 tea estates of the Respondent (Corporate Debtor). 4. It is submitted that the said Notification has been challenged before the Hon ble High Court of Calcutta and the Division Bench by order dated 16th September, 2016 though issued notice but has not passed order of stay. 5. Reliance has also been placed on the decision of the Hon ble Supreme Court in Macquarie Bank Limited vs. Shilpi Cable Technologies Limited ( 2018) 2 SCC 674 to suggest that Section 9 of the I B Code will have no over-riding effect on the previous Tea Act, 1953. 6. The Tea Act, 1953 was enacted to provide for the control by Union of the tea industry, including the control, in pursuance of the International Agreement of the cultivation of tea in and of the export of the tea from India and for that purpose to establish a Tea Board and levy a duty of excise on the tea produced i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order should remain in force, the Central Government may by notified order, cancel such order and, on cancellation of any such order the management or control as the case may be, of the tea undertaking or tea unit, shall vest in the owner of that undertaking or unit, 16-I. (1) If the Central Government is of opinion that there are possibilities of running or restarting a tea undertaking or tea unit in relation to which an investigation has been made under subsection (2) of section 16B, and that such tea undertaking or tea unit should be run or restarted for maintaining or increasing the production supply or distribution of tea that Government may make an application to the court by which the company owing such tea undertaking or tea unit has been ordered to be wound up, praying for permission to appoint any person or body of persons to take over the management of the tea undertaking or, as the case may be, tea unit, or to exercise in respect of the whole or any part of the tea undertaking or tea unit, such functions of control as may be specified in application. Under sub-section (2) of Section 16G, the Central Government may by notification in the Official Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto. 15. The Hon ble Supreme Court in Swiss Ribbons Pvt. Ltd. Anr. vs. Union of India Ors. ( 2019 SCC OnLine SC 73) observed : 27. As is discernible, the Preamble gives an insight into what is sought to be achieved by the Code. The Code is first and foremost, a Code for reorganisation and insolvency resolution of corporate debtors. Unless such reorganisation is effected in a time-bound manner, the value of the assets of such persons will deplete. Therefore, maximisation of value of the assets of such persons so that they are efficiently run as going concerns is another very important objective of the Code. This, in turn, will promote entrepreneurship as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erent board, no permission of the Central Government is required in terms of Section 16G(1) of the Tea Act, 1953. The Adjudicating Authority have erred in noting the aforesaid fact. We have no other option but to set aside the order. So far as the question of limitation is concerned, as that was not raised before the Adjudicating Authority, we are not deciding this issue as it is a mixed question of facts and law. 19. This apart, we may mention that for filing an application under Section 9 of the I B Code, Article 137 of Part II of the Third Division of the Schedule of Limitation Act, 1963, is applicable which is as follows : PART II OTHER APPLICATIONS Description of application Period of limitation Time for which period being to run 137. Any other application for which no period of limitation is provided elsewhere in this division. Three years Where the right to apply accrues 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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