TMI Blog2021 (5) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... the Corporate Debtor is a fixed deposit which can be withdrawn and distributed within a short period of time, and it would be a tad difficult to reverse the clock once the liquidation order is passed. If further action is taken to distribute the fixed deposit by liquidating the same, then it will also have the effect of rendering the appeal otiose. The liquidation of the Corporate Debtor cannot be allowed at this stage - application dismissed. - IA (IB) No. 804 and 1091/KB/2020 and in CP (IB) No. 2084/KB/2019 - - - Dated:- 16-4-2021 - Rajasekhar V.K., Member (J) For Appearing Parties : Arun Gupta, FCA, Sneh Maheshwari, Mainak Bose, Aniruddha Mitra, Dhilon Sengupta, Madhurima Sarkar, Advocates, Joy Saha, Senior Advocate and Avis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Debtor and appointed Ms. Sneh Maheshwari as the Interim Resolution Professional (IRP). 5. The Applicant submits that in terms of section 15 of the Code, public announcement was made on 17.03.2020, in Financial Express (English) and Aajkal (Bengali) of Kolkata Edition of the said newspapers, fixing 27.03.2020 as the last date for submitting the claim. 6. The Committee of Creditors (CoC) was duly constituted with one Financial Creditor, and the Report certifying the constitution of the CoC was filed with the Adjudicating Authority on 28.03.2020 via email due to the lockdown imposed in the wake of Covid-19. 7. The first meeting of the CoC was held on 02.04.2020, wherein the IRP was appointed as the Resolution Professional ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering any resolution for the Corporate Debtor, resolved to proceed for liquidation of the Corporate Debtor. 14. The learned Counsel placed reliance on Mool Chand Yadav and Ors. v. Raza Buland Sugar Company Limited, Rampur and Ors. MANU/SC/0170/1982 dated 15.10.1982 in support of his submission that during the pendency of an appeal, no adverse order should be passed that would have serious effect on the case. Submissions of the learned Senior Counsel on behalf of the Respondent No. 1 15. It is averred that the claim of the Financial Creditor is not disputed on merits and at the time of admission of the main C.P. (IB) No. 2084/KB/2020, the Corporate Debtor never contended that the Financial Creditor was not a financial creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the Corporate Debtor had filed an application challenging the maintainability of the petition under section 7 of the Code and had reserved its right to file reply affidavit in the main CP, but this Bench summarily rejected the maintainability application and at the same time admitted the section 7 petition without granting any opportunity to the Corporate Debtor to file its reply affidavit. 21. It is further submitted that the question whether the amount qualifies as financial debt is under consideration before the Hon'ble NCLAT and that the respondents intentionally have not filed reply to appeal. It is further denied that there exists no ground to challenge the decision of CoC of 05.09.2020. 22. It is submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in IA (IB) No. 804/KB/2020 and I.A.(IB) No. 1091/KB/2020 and perused the record. 28. The question that needs to be addressed is whether an order of liquidation can be passed in view of an appeal pending before the Hon'ble NCLAT. 29. The main object of the Code is to revive a Corporate Debtor within a given time frame keeping in view the maximization of the assets of the Corporate Debtor. The Resolution Professional has submitted that the only asset of the Corporate Debtor is a fixed deposit ₹ 3.5 Crore. 30. It is pertinent to note that appeal has been filed before the Hon'ble NCLAT for setting aside the order of admission and the Hon'ble NCLAT has not granted stay with respect to the order of admission dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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