Harish Chander Arora vs Sri Balaji Forgings Pvt. Ltd. & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 308 of 2024
Ratio decidendi
The rule this decision rests on
The Liquidator, under the Insolvency and Bankruptcy Code and the Liquidation Process Regulations, bears the duty to take control of the assets of the corporate debtor and, where those assets are not in the Liquidator's possession, to take appropriate measures and institute proceedings under the Code to do so. Where the Liquidator has the statutory duty and means to secure possession of the corporate debtor's assets under the Insolvency and Bankruptcy Code, there is no occasion to invoke Section 429 of the Companies Act, 2013 to seek directions to a Chief Judicial Magistrate or District Magistrate to take control of such property, and the Adjudicating Authority does not err in declining to do so.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Company Appeal (AT) (Insolvency) No. 308 of 2024 & I.A. No. 907 of 2024
IN THE MATTER OF:
Harish Chander Arora Liquidator of Rathi Super Steel ...Appellant(s) Ltd.
Versus
Sri Balaji Forgings Pvt Ltd. & Ors. ...Respondent(s)
Present: For Appellant : Mr. Jasmeet Singh, Mr. Pushpendra S. Bhadoriya, Mr. Saif Ali, Advocates For Respondents :
ORDER
(Hybrid Mode)
22.02.2024: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the Order passed in C.A. No. 1523
of 2020.
3. Learned Counsel for the Appellant submits that the Adjudicating
Authority under Section 429 of the Companies Act ought to have issued
direction to the concerned Chief Judicial Magistrate and District Magistrate
to take control of the property of the corporate debtor spread in different part
of the country.
4. The Application has been filed by the Liquidator. Liquidator under the
IBC and Liquidation Process Regulation has duty to take control of the assets
of the Corporate Debtor. It is liquidator who has to take appropriate measures, 2
institute proceedings as per the IBC for taking control of the assets of the
Corporate Debtor if they are not in possession of the Liquidator.
5. At this state, we are of the view that there was no occasion to invoke
Section 429 of the Companies Act. We thus do not find any error in the order
passed by the Adjudicating Authority disposing I.A. No. 1523 of 2020.
The Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Justice Yogesh Khanna] Member (Judicial)
[Barun Mitra] Member (Technical) Basant/nn
Company Appeal (AT) (Insolvency) No.308/2024
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