TMI Blog2019 (9) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... legal and proper and being satisfied that CoC with majority vote share approved the decision for liquidating the Corporate Debtor company, we have no other alternative other than to pass an order of Liquidation. 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. - CA (IB) Nos. 1122/KB/2018, 412, 422, 453, 612, 577, 929, 1066/KB/2019, Inv. A. (IB) No. 929/KB/2019 and CA (IB) No. 1066/KB/2019 in C.P. (IB) No. 93/KB/2018 - - - Dated:- 30-9-2019 - Jinan K.R., Member (J) and Harish Chander Suri, Member (T) For Appearing Parties: Binay Kumar Singhania, Aniruddha Roy, Advocate, Arun Gupta, Pr. CA, Atul Sureka, Abhishek Sikdar, Sumit Biswas, Kumarjit Banerjee, Sanchari Chakraborty, Sikha Agarwal, Swapna Choubey, A.P. Gomes, Debolina Dey, A. K. Awasthi, Jishnu Chowdhury, Sudeshna Das Mazumder and Rashmi Bothra, Advocates ORDER Jinan K.R., Member (J) All the applications are taken together for convenience and for avoiding repetition of facts and since common questions arise for consideration. 1. CP(IB) No. 93/KB/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding for consideration. It was filed for lifting attachment of the various properties of the Corporate Debtor by the Directorate of Economic Offences, West Bengal (In short, 'DEO, WB'). 5. In view of the expiry of 270 days of 'CIRP' period and in the absence of having any successful resolution by getting a resolution plan, the reliefs sought for in all these applications have become infructuous. No purpose would be served to proceed with these applications wherein ownership of flat at Kasba is under challenge by the occupiers of the flat, who preferred an Inv, A. (IB) No. 929/KB/2019. The title regarding the disputed flat allegedly belonging to the Corporate Debtor cannot be determined at the fag end of the 'CIRP'. It is left open for determination by the Liquidator by taking appropriate steps under the provisions of the Code, Regulations and applicable law in force. 6. Admittedly, the 'DEO, WB' had attached the properties of the Corporate Debtor as if it is the proceed of crime under the provisions of the West Bengal Protection of Interest of Depositors in Financial Establishments Act, 2013 (In Short 'Act of 2013') above said 'Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... occupation of the building which was seized by the DEO WB. The Corporate Debtor was occupying 2 rooms as a tenant in the said building. According to the Ld. Counsel appearing for the applicant the Corporate Debtor owes a sum of ₹ 47,35,826/- along with interest @ 18% p.a. and prays for accepting the claim of the applicant and prays for issuing directions to hand over vacant possession of the Office Rooms allegedly under the possession of the RP. 11. It is submitted by the Ld. RP that the Office Room, belonging to the applicant was sealed by the 'DEO, WB' and they have no access to the office and that seal of the room is to be opened by the 'DEO, WB' for enabling the landlord to get back the possession. RP also would submit that he did not taken possession of the premises because the 'DEO, WB' failed to handover the office room inclusive of all the assets of the Corporate Debtor to the RP despite repeated requests. Since the RP has not taken possession of the disputed building in this application, the prayer for surrendering vacant possession cannot be granted as prayed for. Regarding the arrears of rent the applicant can submit its claim to the liq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial furnished before us to prove that Corporate Debtor company is a chit fund company or a financial service provider comes under the purview of the 'WBPIDFE Act'. No claimant also came forward claiming refund of deposit if any deposited in the CD company. In the absence of sufficient materials to prove that the Corporate Debtor in any manner whatsoever come within the scope of purview of 'WBPIDFE Act' we are unable to hold that the proceedings initiated by this Adjudicating Authority is illegal and improper. 15. As per Section 3 of 'WBPIDFE Act', the authorities under the Act has cause of action in a case where the company failed or fraudulently defaulted in payment of deposit after the specified period or under section 2(e) of the 'WBPIDFE Act'. 16. Financial establishment is defined in section 2(e) of the 'WBPIDFE Act'. The expression Financial Establishment means any person or a group of individuals or a corporate body or a partnership firm including the director, promoter, partner, manager or member of the said establishment accept the deposit under any Scheme or arrangement or in any manner, but does not include the entities ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in any one of the aforesaid cases. We are unable to hold that the WBPIDFE Act has application in the case in hand. So we disagree with the view expressed by Ld. Counsel Mr. Jishnu Chowdhury appearing for and behalf of the applicant in this application. 19. Ld. Counsel also attempted to convince us that 2 of the directors of the Corporate Debtor company being directors of the group companies wherein the common directors were arrested and jailed the assets of the Corporate Debtor come under proceeds of crime and therefore the actions of the 'DEO, WB' is proper and legal. Being satisfied that the Corporate Debtor does not come under the definition of financial establishment under the provisions of 'WBPIDFE Act', the provisions of 'I B Code' that applies in the case in hand and the provisions of 'WBPIDFE Act' is not applicable in the instant case and therefore we also do not find any merit in the above said submission of the Ld. Counsel for the applicant in this CA. 20. An argument also was advanced on the side of the applicant that SEBI published the name of the CD in the electronic media as a company involved in Ponzi Scam and therefore the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce premises which was sealed by it, that the non cooperation of the 'DEO WB', despite direction by the Hon'ble High Court Calcutta in the W.P. No. 24110 (W) of 2016, it is fair and just to impose a cost of ₹ 5 lacs on the applicant which would be recoverable from the erring officers. Accordingly this application is liable to be dismissed with cost of ₹ 5 lacs. 22. Being found that initiation of CIRP process as against the Corporate Debtor company under the provisions of the Code is perfectly legal and proper and being satisfied that CoC with majority vote share approved the decision for liquidating the Corporate Debtor company, we have no other alternative other than to pass an order of Liquidation. 23. The Resolution Professional though made his efforts to get back the assets of the Corporate Debtor from the 'DEO, WB' but he failed in having any access to the books of account, without which he could not verify the claim received from the creditors and could not complete their valuation because of the sole reason of non-cooperation of the 'DEO, WB' the inability of the Resolution Professional in not getting a successful resolution appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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