TMI Blog2019 (2) TMI 1947X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. The steps should be taken for outright sale of the corporate debtor so as to enable the employees to continue in service on such outright sale. Appeal disposed off. - Company Appeal (AT) (Insolvency) No. 191 of 2019, 192 of 2019, 193 of 2019 - - - Dated:- 26-2-2019 - Justice S.J. Mukhopadhaya, Chairperson And Justice Bansi Lal Bhat, Member (Judicial) For Appellant : Mr. Kamal Mehta, Advocate, Mr. Brijesh Kumar Singh, Advocate For Respondent : Mr. S. Ananth, Mr. G. Ananda Selvam, Advocate for Resolution Profesional And Mr. G. V. Ravikumar, Advocate ORDER These appeals have been preferred by one of the Director / Shareholder of M/s. Air Carnival Pvt. Ltd. (Corporate Debtor) challenging the order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 observed : 7. Section 391 of the Companies Act, 1956 has since been replaced by Section 230 of the Companies Act, 2013, which is as follows: 230. Power to compromise or make arrangements with creditors and members (1) Where a compromise or arrangement is proposed- (a) between a company and its creditors or any class of them; or (b) between a company and its members or any class of them, the Tribunal may, on the application of the company or of any creditor or member of the company, or in the case of a company which is being wound up, of the liquidator appointed under this Act or under the Insolvency and Bankruptcy Code, 2016 as the case may be, order a meeting of the creditors or class of creditors, or of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eserve Bank of India, a statement to that effect; and (v) a valuation report in respect of the shares and the property and all assets, tangible and intangible, movable and immovable, of the company by a registered valuer. (3) Where a meeting is proposed to be called in pursuance of an order of the Tribunal under sub-section (1), a notice of such meeting shall be sent to all the creditors or class of creditors and to all the members or class of members and the debenture-holders of the company, individually at the address registered with the company which shall be accompanied by a statement disclosing the details of the compromise or arrangement, a copy of the valuation report, if any, and explaining their effect on creditors, key m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial statement. (5) A notice under sub-section (3) along with all the documents in such form as may be prescribed shall also be sent to the Central Government, the income-tax authorities, the Reserve Bank of India, the Securities and Exchange Board, the Registrar, the respective stock exchanges, the Official Liquidator, the Competition Commission of India established under sub-section (1)of section 7 of the Competition Act, 2002, if necessary, and such other sectoral regulators or authorities which are likely to be affected by the compromise or arrangement and shall require that representations, if any, to be made by them shall be made within a period of thirty days from the date of receipt of such notice, failing which, it shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings pending before the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 shall abate; (e) such other matters including exit offer to dissenting shareholders, if any, as are in the opinion of the Tribunal necessary to effectively implement the terms of the compromise or arrangement: Provided that no compromise or arrangement shall be sanctioned by the Tribunal unless a certificate by the company's auditor has been filed with the Tribunal to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the accounting standards prescribed under section 133. (8) The o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. , we direct the Liquidator to proceed in accordance with law. He will verify claims of all the creditors; take into custody and control of all the assets, property, effects and actionable claims of the corporate debtor , carry on the business of the corporate debtor for its beneficial liquidation etc. as prescribed under Section 35 of the I B Code. The Liquidator will access information under Section 33 and will consolidate the claim under Section 38 and after verification of claim in terms of Section 39 will either admit or reject the claim, as required under Section 40. Before taking steps to sell the assets of the corporate debtor(s) (companies herein), the Liquidator will take steps in terms of Section 230 of the Companies Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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