9911796707
TMI Blog2021 (1) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 of IBBI (Liquidation Process) Regulation, 2016, by interalia seeking to direct the Financial Creditor namely Karnataka Bank Limited, Basaveshwaranagar Branch to (i) realize the third party guarantee at the earliest and (ii) to remit the CIRP Cost/ Liquidation Cost to the Liquidator; to direct M/s. Bharat Co-op Bank (Mumbai) Ltd., to foreclose the Fixed Deposits as per the Liquidator's Letter dated 20.12.2019 and remit the proceeds of fixed deposits to Liquidation Bank Account and to pass suitable Orders for early dissolution of the Corporate Debtor (M/s. Bunt Solar India Pvt. Ltd). 2. Brief facts of the case, which are relevant to the instant case, are as follows: (1) Initially, the main Company Petition bearing C.P.{IB)No.72/BB/ 2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest of third party guarantee. However. Financial Creditor is pleading that since they are realizing security interest through SARFAESI Act and need not contribute to CIRP cost/Liquidation Cost. ii. The 2"4 possible realization is from M/s. Bharat Co-op Bank (Mumbai) Ltd., wherein Liquidator has located two fixed deposits,one FD amounting Rs. 1,41,129/- and another one Rs. 1,00,000/- and matures on 09.02.2020 and 06.02.2022 respectively. Liquidator has taken action to foreclose the above Fixed Deposits to meet the Liquidation process cost, but the Banker M/s.Bharat Co-op (Mumbai) Bank Ltd., through Advocates has taken a stand that these two Fixed Deposits are covered and pledged for Bank Guarantee as a Performance guarantee in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntain the amount which is said to be CIRP Cost/Liquidation Cost and for payment of which a direction is sought. (2) The Liquidator by his letter dated 02.01.2020 claimed a sum of Rs. 7,83,200/- towards Resolution Professional expenses and a sum of Rs. 11,16,179/- by way of Liquidation expenses. So far as the Resolution Professional expenses is concerned, the Adjudicating Authority. by order dated 05.09.2019 clearly directed the Financial Creditor to review the expenditure incurred by Resolution Professional and also to verify the same through perusal of relevant documents. In spite of this, the Liquidator has not furnished any of the relevant documents such as Bills, Vouchers etc.. (3) The Liquidator has also claimed a sum of Rs. 1 1,16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timated value of the Secured assets. The expenses and the fees claimed by the Liquidator are contrary to Regulation 6 of the IBBI (Liquidation Process) Regulation, 2016.As admitted by the Liquidator, there are no assets of whatever nature of the Corporate Debtor for realization, however, the Applicant claimed huge amount of Rs. 18,99,379/- The realisation of the secured asset given by a 34 party Guarantor may not be sufficient even to meet the huge dues exceeding Rs. 7.43 Crores payable to it. Hence, the Application may be rejected. 4. Heard Shri G.N.Venkataraman,Liquidator, through Video Conference. We have carefully perused the pleadings of both the along with extant provisions of the Code, and the Rules made there under. 5. Before cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated. By conjointly reading the above provisions, the ultimate objective of Code is either to resolve the issue by way of Resolution Plan or to dissolve the Corporate Debtor, as expeditiously as possible. In the facts and circumstances of The case, justify there would not serve any purpose to keep the Corporate Debtor under regular CIRP proceedings, and thereafter under Liquidation proceedings, under the provisions of Code, the Adjudicating Authority, by exercising its innerent powers conferred under the Act, can pass appropriate order(s) in the interest of speedy justice. 7. The main point for consideration in the instant Application is whether the Corporate Debtor can still be continued so as to strictly comply with all extant provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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