M/S Rmy Industries Llp vs M/S Apple Industries Pvt. Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 1114 of 2022
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority in liquidation proceedings is empowered to entertain applications filed by the Liquidator or the Successful Auction Purchaser concerning the terms and conditions of an auction sale or a sale as a going concern, as contemplated under the Liquidation Regulations. Where a Successful Auction Purchaser seeks reliefs or concessions that arise from the terms and conditions of the auction sale or sale as a going concern, the appropriate course is to file a specific application before the Adjudicating Authority, which is to consider it on its merits; a blanket rejection of a multi-relief application without such consideration is not an adequate disposal of the matter, and the Appellate Tribunal may therefore give liberty to file such an application rather than adjudicate the individual reliefs itself.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
RMY Industries LLP ...Appellant
Versus
Apple Industries Pvt. Ltd. Through its Official Liquidator ...Respondent
Present: For Appellant: Mr. Gaurav Gupta and Mr. Samyak Gangwal, Advocates. For Respondents:
ORDER
12.10.2022: Heard learned counsel for the appellant. This Appeal has
been filed against the order dated 01.08.2022 by which order I.A. No.
880/2022 filed by the Appellant for certain reliefs and concessions has been
rejected.
2. Appellant was the Successful Auction Purchaser in the liquidation
proceeding where assets were sold as going concern on 'as is where is' basis.
In the application I.A. No. 880 of 2022, the Appellant in Para 28 has claimed
about 30 reliefs and concessions. The Adjudicating Authority has rejected
application observing that no relief and concession can be granted.
3. Learned counsel for the Appellant has relied on judgment of this
Tribunal in "Company Appeal (AT) (Ins.) No. 650 of 2020, M/s Shiv Shakti
Inter Globe Exports Pvt. Ltd. vs. M/s KTC Foods Private Limited". In the
aforesaid case with regard to liquidation sale as going concern Liquidator has
filed application for certain relief which was related to the past dues and prayer -2-
for extinguishment of past/ remaining unpaid outstanding liabilities, which
was permitted.
4. We are of the view that the Adjudicating Authority is empowered to
consider any application filed by the Liquidator or Successful Auction
Purchaser, which may arise with regard to terms and conditions of auction
sale or sale as going concern as per the Liquidation Regulation. We, thus, are
of the view that end of justice be served in giving liberty to the Appellant to file
an appropriate application before the Adjudicating Authority, which may arise
from the terms and conditions of the auction sale or sale as going concern,
which may be considered by the Adjudicating Authority. The Appeal is
disposed of with liberty aforesaid.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical)
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 1114 of 2022
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