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TMI Blog2019 (9) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... pirits Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 (In short, 'I & B Code'). Vide order dated 19/07/2018, this application was admitted by appointing Mr. Partha Kamal Sen as an Interim Resolution Professional. Subsequently, as per the order passed in an application filed by the Financial Creditor/State Bank of India, Mr. Partha Kamal Sen was replaced with Mr. Binay Kumar Singhania as a Resolution Professional (RP). 2. Mr. Binoy Kumar Singhania thereafter conducted the process convening altogether 7 (seven) meetings of the Committee of Creditors (In short, 'CoC'). In the 7th meeting of the CoC held on 05/04/2019, the CoC by majority voting share of the committee members has decided not to proceed with the process and recommended liquidation. In the meanwhile, the extended period of 270 days of the 'CIRP' period expired on 14/04/2019. The resolution recommending liquidation was approved by the CoC with 66% vote share and the Resolution Professional has filed his Final Progress Report on 16/04/2019. The Resolution Professional has given his consent for continuation as a Liquidator and his willingness seems to have been accepted by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orcement) and CA(AT) (Insolvency) No. 493 of 2018 (Varsana Ispat Limited, Through the Resolution Professional Mr. Anil Goel -vs- Deputy Director, Directorate of Enforcement) has held that "provisions of the 7 & B Code' do not prevail over the PMLA Act'. Proposition laid down in the above said case is squarely applicable in the case in hand. 7. The Hon'ble Delhi High Court in Dy. Director, Directorate of Enforcement, Delhi -vs- Axis Bank &Ors (Cr. Appeal No. 143 of 2018) has held that{- "Object of PMLA being distinct from the purpose of the RDDA, SARFAESI and the Code. The later 3 legislations do not prevail over the former". 8. It appears to us that provisions of 'Act of 2013' do prevail over the provisions of the Code and therefore, we could not determine the title in regard to the disputed property under attachment by the 'DEO, WB' and unable to pass an order for de-attaching of the property by 'DEO, WB'. 'Act of 2013' as prayed for by the RP. It is a self contained Act wherein Section 19 enables the Liquidator to prefer an appeal against the order of the authorities before the Hon'ble High Court at Calcutta. That being so we ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion CA(IB) No. 577/KB/2019 filed by the Directorate of Economic Offences, Government of West Bengal praying for dismissal of the CIRP proceeding already initiated in CP(IB) No. 93/KB/2018, also comes up for our consideration, on the allegation that the Corporate Debtor company is one of the listed companies under the SEBI was engaged in carrying out business of chit fund and financial activities and the directors of the Corporate Debtor had shareholdings in (a) LRM Finance Limited; (b) ASK Financial Service Private Limited; (c) Greenage Food Products Limited; (d) Universal Multi State Credit Cooperative Society Limited and (e) Pincon Infrastructure Limited and that the Corporate Debtor company being a financial service provider, proceedings initiated against the Corporate Debtor is illegal and is, therefore, liable to be dismissed. 13. The Ld. Counsel appearing for the applicant in CA(IB) No. 577/KB/2019 attempted to show us that the Corporate Debtor company is a chit fund company and was accepting fixed deposit and doing financial service activities and that its directors were arrested in a proceeding initiated under the West Bengal Protection of Interest of Depositors in Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DFE Act'. 17. Ld. Counsel appearing for the RP brought to our notice an order of the Hon'ble Calcutta High Court in W.P. No. 24110(W) of 2016 wherein the application for impleading the Corporate Debtor has been allowed by the Hon'ble High Court at Calcutta. The said writ petition seems to have been filed by public at large who were defrauded by the companies named in this application. The Hon'ble High Court at Calcutta issued directions to 'DEO, WB' to co-operate with the RP and to assist him to discharge his statutory duties and functions in terms of 'I & B Code'. The assets of the Corporate Debtor have been excluded by the Hon'ble High Court vide order dated 23/04/2019 holding that assets and properties of Pin con Spirits Limited, the Corporate Debtor herein, should be kept outside purview of such sale. Despite the Hon'ble High Court of Calcutta's directions the 'DEO, WB' did not render any assistance to the RP and till date the property was not excluded from the attachment and attachment was not released and it is still in force. On the other hand the 'DEO WB', comes up with this application challenging the order of ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;. Moreover, we cannot rely upon an electronic media report to hold that the CD company falls under the purview of 'WBPIDFE Act'. According to the Ld. Counsel for the RP, the said report has no evidentiary value or probative value. According to him, it is similar to a newspaper report and would further submit that no finding could be made on the strength of a paper report or on the strength of an electronic media report. To convince us he cited AIR 1988 SC 1274 in Laxmi Raj Shetty -vs- State of Tamil Nadu. He relied upon para 25 in the above said citation which read as follows:- "25. As to the first, the accused Laxmi Raj Shetty was entitled to tender the newspaper report from the Indian Express of the 29th and the regional newspapers of the 30th along with his statement under S. 313 of the Code of Criminal Procedure, 1973. Both the accused at the stage of their defence in denial of the charge had summoned the editors of Tamil dailies MalaiMurasu and Makkal Kural and the news reporters of the Indian Express and Dina Thanthi to prove the contents of the facts stated in the news item but they dispensed with their examination on the date fixed for the defence evidence. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r III of Part II read with Section 33(1) of the Insolvency and Bankruptcy Code, 2016. The Ld. RP was asked to submit his willingness to continue as the Liquidator and since he has expressed his consent, the RP is to be appointed as the Liquidator. 25. In the result, the application is allowed by ordering liquidation of the Corporate Debtor, namely, Pincon Spirits Limited in the manner laid down in the Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016, upon the following among orders:- ORDER (a) Shri Binay Kumar Singhania is appointed as Liquidator; (b) Shri Binay Kumar Singhania is directed to issue Public Announcement stating that the Corporate Debtor is in liquidation, in terms of Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016; (c) The Registry is directed to communicate this Order to the Registrar of Companies, West Bengal and to the Insolvency and Bankruptcy Board of India; (d) The Order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh Moratorium under Section 33(5) of the Insolvency and Bankruptcy Code shall commence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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