TMI Blog2022 (6) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... tcy Code, 2016, which is a well defined provision exemplifying the powers of the Tribunal - the appellate Tribunal is empowered to identify as to whether the approved resolution plan is in contravention of the provisions of any law for the time being in force and as to whether there has been any material irregularity in exercising the powers by the resolution professional during the corporate insolvency resolution period. Yet another aspect that has come to our mind is that from the order of the Tribunal, it is clear that the secured creditor Bank has relinquished its security interest to the litigation estate and received proceeds from the sale of the estates by the liquidator in the manner specified in Section 53 of the Code, 2016. It is an admitted fact that the appellants have offered a guarantee to the loan availed by the Corporate Debtor from the first respondent Bank. It is under the above circumstances the Company Law Tribunal has arrived at its conclusions in its impugned order. Since the order was passed by the Tribunal after providing an opportunity of hearing to the appellants and other interested persons and taking into account the legal questions raised by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt by filing W.P.(C) No. 3872 of 2021. This Court, as per Ext. P3 judgment dated 09.04.2021, allowed the writ petition by setting aside the order of the Company Law Tribunal and further directed the Tribunal to reconsider the issue again. 4. The Tribunal, in accordance with the directions issued by this Court, reconsidered the said application and it was allowed as per Ext. P14 order dated 20.01.2022 holding as follows: 23. Hence, we affirm our order passed on 1st February, 2021 in MA/76/KOB/2020 and ordered as under: a) Both respondents are directed to hand over the physical possession of the mortgaged leasehold land of the Corporate Debtor (both Express Lease Implied Lease lands used by the Corporate Debtor) to the Applicant in order to use as the Liquidation Estate of the Corporate Debtor. b) The Applicant is also permitted to add the mortgaged land W.A. No. 537/2022 : 5 : (Express Lease100.16 Ares and Implies Lease78.45 Ares) into the Liquidation Estate of the Corporate Debtor of the respondents 3 to 8, to the liquidation Estate of the Corporate Debtor. c) The Liquidator is directed to strictly follow the procedures to take over the property in question, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vate Limited v. State of Karnataka and others [(2020) 13 SCC 308]. It is also pointed out that the questions raised before the learned single Judge as to whether the National Company Law Tribunal had jurisdiction to add personal properties of the appellants into the liquidation estate and whether the leasehold properties would be added into the liquidation estate of the company, especially when the lease itself is void in terms of Section 65A of the Transfer of Property Act, were not considered and adjudicated by the learned single Judge. 8. It is also submitted that the learned single Judge misdirected himself to the issue, however, answered the second question contrary to the findings of the Supreme Court in Embassy Property Developments Private Limited (supra). It is also submitted that Sections 36(4)(a)(iv) and (c) specifically excludes the property which is in the possession of the Corporate Debtor under any contractual agreement and also the personal property of the Managing Directors or the shareholders. Therefore, according to the appellants, in terms of the legal circumstances pointed out above, the Tribunal ought not to have allowed the application and hence, the writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter in the proper perspective, afresh. 24. The petitioners would state that they are entitled to notice and to be heard before the Tribunal takes any decision to include their property in the Liquidation Estate and that the impugned order of the Tribunal is violative of the principles of natural justice. The learned Counsel for the respondents on the other hand would urge that IBC does not contemplate issuance of notice to the petitioners and since this Court and the Apex Court have held that the IBC is a self contained Code, no notice need be issued to the writ petitioners, in respect of M.A.No.76/KOB/2020 in which the impugned order is passed by the Tribunal. 25. The Rule 51 of the National Company Law Tribunal Rules, 2016 provides that the Tribunal may regulate its own procedure in accordance with the rules of natural justice and equity, for the purpose of discharging its functions under the Act. Since the petitioners in WP(C) No.4672/2021 are already before the Tribunal filing Intervention application, it would be only just, proper and equitable that the Tribunal hear the petitioners in these writ petitions also before taking a decision afresh. In the circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to arrive at a logical conclusion with respect to the contentions advanced by the appellants, which reads thus: 3) An appeal against an order approving a resolution plan under section 31 may be filed on the v resolution plan does not comply with any other criteria specified by the Board. 16. Therefore, on an analysis of the provision, it is clear that the appellate Tribunal is empowered to identify as to whether the approved resolution plan is in contravention of the provisions of any law for the time being in force and as to whether there has been any material irregularity in exercising the powers by the resolution professional during the corporate insolvency resolution period. 17. Yet another aspect that has come to our mind is that from the order of the Tribunal, it is clear that the secured creditor Bank has relinquished its security interest to the litigation estate and received proceeds from the sale of the estates by the liquidator in the manner specified in Section 53 of the Code, 2016. It is an admitted fact that the appellants have offered a guarantee to the loan availed by the Corporate Debtor from the first respondent Bank. It is under the above circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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