Maya Gupta vs Ritesh Agarwal & Ors

In the matter of: Maya Gupta ....Appellant Liquidator of PD Advisory Services LLP Vs. Ritesh Agarwal & Ors. ....Respondents Present For Appellant: Mr. Kunal Godhwani & Ms. Maya Gupta (in person), Advocates . For Respondents: Mr. Abhay Kaushik, for R-1 to 3.

ORDER

(Virtual Mode)

11.07.2022: Heard Learned Counsel for the Parties.

The Respondent has no objections to the prayers in the appeal been

granted.

This Appeal has been filed challenging the Order passed by the

Adjudicating Authority dated 24.03.2022 by which the Application filed by the

Liquidator under Regulation 45 (3)(a) read with Regulation 32(e) and 32A(1) of

the Insolvency and bankruptcy Board of India (Liquidation Process) Regulations,

for taking on record final report and pass an order for closer of the Liquidation

has been kept pending and listing for further consideration.

Counsel for the Appellant submit that in view of the Regulation 37 (A) the

Deed of Assignment has already been executed on 15th Nov, 2021 and

applications which are pending has already been assigned. There was no

impediment in closer of the liquidation process. Adjudicating Authority ought 2

not to have kept the application pending and the liquidation process ought to

have been allowed to be closed.

We have considered the submissions. Regulation 37 (A) of the Liquidation

Process Regulations provides as follows :-

"37A. Assignment of not readily realisable assets.

41[37A. (1) A liquidator may assign or transfer a not readily

realisable asset through a transparent process, in consultation with the stakeholders' consultation committee in accordance with regulation 31A, for a consideration to any person, who is eligible to submit a resolution plan for insolvency resolution of the corporate debtor.

Explanation.--For the purposes of this sub-regulation, "not readily realisable asset" means any asset included in the liquidation estate which could not be sold through available options and includes contingent or disputed assets and assets underlying proceedings for preferential, undervalued, extortionate credit and fraudulent transactions referred to in sections 43 to 51 and section 66 of the Code.]"

The Deed of Assignment has already brought on record at Page 147 of the

Appeal Paper Book.

The applications which have been filed for avoidance having already been

assigned, we are of the view that Applications regarding preferential

transactions, under value transaction and fraudulent transaction which has

been noted in Paragraph 5 of the Application having already been assigned the

Liquidation Process ought to have been allowed to be closed. 3

The Application which was filed by the Liquidator I.A. No. 65 of 2022 for

closer is allowed and the order of the Adjudicating Authority is modified

accordingly.

The Appeal is partly allowed.

[Justice Ashok Bhushan] (Chairperson)

[Justice M. Satyanarayana Murthy] Member (Judicial)

[Mr. Naresh Salecha] Member (Technical) Simran/nn