TMI Blog2022 (6) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 to 5 in IA/1005/2021, before the Resolution Professional or the Liquidator during the CIRP and the Liquidation process. This Adjudicating Authority is of the considered opinion that the Sub Registrar of Uthumalai's demand of No Objection Certificate from the Tahsildar, Veerakeralampudur for registering the sale deed dated 12.02.2021 entered into between Sri Gomathi Energy (P) Ltd. and the Liquidator of the Corporate Debtor, reasoning alleged de facto attachment made on the Property is unjustifiable at this stage of Liquidation. Moreover, the Property sold to the Sri Gomathi Energy (P) Ltd. was in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. The Sub Registrar, Uthumalai is directed to register the sale deed dated 12.02.2021 entered between Sri Gomathi Energy (P) Ltd. and the Liquidator of the Corporate Debtor - the liability in respect of the Property is not extinguished - Application disposed off. - IA(IBC)/1005/CHE/2021 in TCP/130/IB/2017, IA/241(CHE)/2021 in TCP/130/IB/2017 and IA/1337/IB/2021 in TCP/130/IB/2017 - - - Dated:- 1-6-2022 - S. Ramathilagam, J. (Member (J)) and Anil Kumar B., Member (T) For the Appellant : Jesus Mor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the 5th Respondent was not reflected in the encumbrance certificate issued by the 6th Respondent. 1.6. It was further submitted that in clause 1.4 of the asset purchase agreement dated 15.03.2021 the 1st Respondent has mentioned that the seller hereby agrees to facilitate to the buyer to the extent possible, in getting approval/clearance/connection such as pollution clearances, electricity connection etc. 1.7. It was further submitted that 1st Respondent has suppressed the fact charges already created on the Properties and sold it to the Applicant. It was further contended that in such circumstances any proceedings of the 2nd to 6th Respondents regarding any encumbrance already created are liable to be set aside and sought to restrain the recovery proceedings against the Property. 1.8. In view of the above submissions the Applicant prays to direct the 6th Respondent to register the sale deed in this respect and sought to set aside all the proceedings initiated by the 2nd to 6th Respondent. 1.9. It was submitted by the Learned Counsel for the 2nd Respondent that there is no attachment made by 2nd Respondent on the Property and pleaded prayer (a) sought by the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expressed interest in purchasing the Property vide letter dated 27.12.2019 and 06.01.2020, and offered Rs. 10,53,60,000/- for purchasing the Property. 2.5. It was further submitted that the secured creditors of the Corporate Debtor viz., Bank of India and Phoenix ARC Private limited, who are holding charge on the Property relinquished their security interest and agreed to receive proceeds from the sale of assets by Liquidator. 2.6. Thereafter, a Letter of Intent dated 21.01.2020 was executed between the Liquidator and the 4th Respondent, wherein it was agreed that the payment of Rs. 10,53,60,000/- shall be made by the 4th Respondent in 3 tranches on the specific agreed dates. It was submitted that the 4th Respondent failed to make the agreed payment on time and filed an application before this Tribunal seeking exemption of penal interest for the default, which was dismissed by this Tribunal. Subsequently, the 4th Respondent preferred to appeal against this Tribunal order, wherein the Hon'ble NCLAT allowed the appeal with the cost for the delay caused. 2.7. In compliance with the Hon'ble NCLAT's order, the 4th Respondent had paid the agreed consideration of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Liquidation Process) Regulation 2016 by the Liquidator of the Corporate Debtor viz. Auro Mira Biopower India Limited seeking relief as follows, a) To Extend the Liquidation period for 3 months from 24th December 220, for successful completion of the sale transaction. b) To issue such other order or orders as this Tribunal may deem fir and proper in the circumstances of the case. 3.2. In this application it is seen that the Applicant had prayed for an extension of the Liquidation period for 3 months from 24th December 2020, which is now turned infructuous and stands closed. 4. Heard the submissions made by the Learned Counsels for both the parties, from the submissions of the Counsels and on perusing the documents in detail, we see that in para 4 of the counter filed by the 2nd Respondent in IA/1005/2021, it was submitted that no attachment made by the said Respondent on the Property. Moreover, it appears that no charge specified by the 5th Respondent in IA/1005/2021, has been reflected in the encumbrance certificate of the Property. 5. It can be seen from the letters dated 24.12.2020 and 10.02.2021, exchanged between the 5th and 6th Respondents in IA/1005/2021, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned above, the Schedule Property is being sold on 'As is where is, whatever there is basis. reading the above clause clarifies that the sale was executed as 'As is where is, whatever there is' basis and the principle of caveat emptor is squarely applicable to this auction purchaser viz., Sri Gomathi Energy (P) Ltd., that it should be aware of the status of the Property which is being sold to it. 9. Here it would be relevant to refer the decision of Hon'ble Apex Court in Telangana State Southern Power Distribution Company Limited Anr Vs. Srigdhaa Beverages wherein it was held that 15. We have gone into the aforesaid judgments as it was urged before us that there is some ambiguity on the aspect of liability of dues of the past owners who had obtained the connection. There have been some differences in facts but, in our view, there is a clear judicial thinking which emerges, which needs to be emphasized: A. That electricity dues, where they are statutory in character under the Electricity Act and as per the terms conditions of supply, cannot be waived in view of the provisions of the Act itself more specifically Section 56 of the Electricity Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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