TMI Blog2020 (9) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... r which the specific direction is not required from this Adjudicating Authority - In view of the above provisions of Section 35 and Section 53 of the I B Code, 2016 the liquidator is also seeking permission of this Bench to distribute the proceeds of the sale. The liquidator has to arrive at the amount available for distribution after deducting the costs, if any, as required under section 53(1)(a). Further there are no details as to amount payable to labourers in terms of section 53(1)(b)(i). Hence no directions can be given in respect of this prayer at this stage and he has to file application providing all the details preferably by serving a copy to the security interest holders over this asset - Application partially allowed. - M.A. No. 3902/2019 in C.P. (IB) No. 18/NCLT/MB/2017 - - - Dated:- 21-8-2020 - Hon ble Member (Judicial), Smt. Suchitra Kanuparthi And Hon ble Member (Technical), Shri V. Nallasenapathy For the Applicant: Mr.Rohit Gupta, Advocate ORDER Per: V. Nallasenapathy, Member (Technical) 1. The applicant/liquidator of the Corporate Debtor, Facor Steels Limited, has filed this application for the following reliefs:- a) That the Assets of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. It is submitted that it is difficult to segregate the assets of VISCO and the Corporate Debtor without causing any harm to its usefulness. It is submitted that if the assets of the Corporate Debtor are to be sold separately to different parties then most part of the building which is owned by the Corporate Debtor will have to be demolished which will substantially affect the realisable value. Further such demolition will also amount to violating the MIDC norms with respect to the percentage of construction and render the purchase of land unviable for the Resolution Applicant of VISCO. 6. It is further submitted that the secured creditors who have security interest over the assets of the Corporate Debtor and who hold exclusively pari passu charge on the assets of the Corporate Debtor have agreed for the sale of assets of the Corporate Debtor to RC Plasto, the Resolution Applicant of VISCO. It is submitted that RC Plasto is willing to purchase the structure for a sum of ₹ 15 Crores, which is over and above the liquidation value of the Corporate Debtor. The applicant submits that the following are the details of valuation of the assets of the Corporate Debtor: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Private Limited have given their consent on 03.03.2020. The Indian Overseas Bank, Vishakhapatnam Branch has also given their consent on 04.03.2020 after the hearing in this application was concluded. The applicant by Affidavit dated 3.3.2020 stated that 91.21% (it shall be 90.21 %) of the secured creditors of the Corporate Debtor have given their consent for this sale by private contract. 10. The Liquidator further submits in his written submissions that Bank of India, Vishakhapatnam Branch, Invent Asset Securitization and Reconstruction Private Limited and Indian Overseas Bank, Vishakhapatnam Branch, constituting 41.34%, 48.87% and 9.79% respectively of the secured loan, have given their consent for the sale of the property of the Corporate Debtor by private treaty. These three creditors constitute 100% of the secured creditors in favour of whom security interest has been created by the Corporate Debtor. 11. Regulation 33 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016, provides as below:- 33. Mode of sale. (1) The liquidator shall ordinarily sell the assets of the corporate debtor through an auction in the manner specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur months preceding the liquidation commencement date; and (ii) debts owed to a secured creditor in the event such secured creditor has relinquished security in the manner set out in section 52; (c) wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date; (d) financial debts owed to unsecured creditors; (e) the following dues shall rank equally between and among the following:- (i) any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date; (ii) debts owed to a secured creditor for any amount unpaid following the enforcement of security interest; (f) any remaining debts and dues; (g) preference shareholders, if any; and (h) equity shareholders or partners, as the case may be. (2) Any contractual arrangements between recipients under sub-section (1) with equal ranking, if disrupting the order of priority under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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