Mittal Iron Steel & Company vs Sanjay Kumar Gupta (Liquidator)

Mittal Iron and Steel Company, ...Appellant Through its Proprietor Surendra Kumar Mittal

Versus

Mr. Sanjay Kumar Gupta, ...Respondents Official Liquidator & Anr.

Present: For Appellant: Mr. Saurabh Kalia, Mr. Chirag Jain, Mr. Rakesh Wadhwa and Deepali Kaushik, Advocates For Respondent: Mr. Aditya Gauri, Mr. Dhananjaya Sud, Mr. Chaitanya Bansal, Advocates

ORDER

01.08.2022: Heard Learned Counsel for the Appellant-Mr. Saurav Kalia

and Learned Counsel appearing for the Respondent.

2. This Appeal has been filed against the Order dated 14th July, 2022

passed by the Adjudicating Authority. By which Order, I.A.(IB) No.

76/CB/2022 filed by the Appellant and I.A.(IB)No. 134/CB/2022 filed by the

Respondent No. 2 has been decided. The Appellant has participated in the

Auction held on 08.09.2020 and was successful bidder-H2 who was offered to

take the plant and machinery subsequently. In the premises, Coal of 2350 MT

was lying which was not permitted to be lifted to the Appellant by the

Liquidator. Subsequently the Liquidator on 11.03.2022 separately issued re- -2-

auction of 2350 MT. Aggrieved by the Auction Notice for auction of 2350 MT

Coal, the Appellant filed an I.A. for setting aside the Auction Notice.

Respondent No. 2-Hira Ferro Alloys Limited also filed an Application claiming

him to be successful auction purchaser in the auction held on 11.03.2022 and

should be allowed to lift the coal 2350 MT.

3. The Adjudicating Authority heard the parties and by the Impugned

Order has rejected the I.A. No. 76 of 2022 filed by the Appellant and allowed

the I.A. No. 134 of 2022.

4. Learned Counsel for the Appellant challenging the Order contends that

when Auction took place on 08.09.2020 the coal which was lying in the

premises was also auctioned along with the auction of all other consumables

and Liquidator had no authority to auction the said coal subsequently. It was

very much included in the Auction in favour of the Appellant. It is further

submitted that Liquidator could not have conducted any fresh auction for the

coal which was part of the 08th Auction held on 08.09.2020. It is submitted

that the Adjudicating Authority erred in observing in paragraph 10 and 13

that 0.5 ton CP Coke was lying at the site when there was no material to

indicate that 0.5 ton CP Coke was lying in the site.

5. We have considered the submissions of the Learned Counsel for the

parties and perused the record.

Company Appeal (AT) (Insolvency) No. 891/2022 -3-

6. The auction in favour of the Appellant on 08.09.2020 was with regard

to the Plant and Machinery along with the said auction stock (consumable

inventory) was mentioned therein which is to the following effect:

Section Item Technical Year Specs Stock I. FINISHED GOODS -Ferro 2010-11 (Consumables Silicon 24MT. Inventory) II. RAW MATERIAL STOCK - Iron Ore Fines, CP Coke, Dolomite, Quartz, Magnesium Ore, C.E. Paste. III. CONSUMABLE GOODS - Lancing Pipes, Copper Tubes etc. lying

7. The issue in the present Appeal is with regard to 2350 MT Coal. Coal

and CP Coke are two different items with different qualities and price. The

Stock Consumables Inventory which was to be auctioned along with plant and

machinery has been clearly delineated in the Auction Notice as extracted

above. The said inventory does not include 2350 MT Coal which was

subsequently put to auction by the Liquidator, whether it was by ignorance or

mistake that Coal was not included is not question which need to detain us.

When the coal 2350 MT was not mentioned and stock of consumables

inventory was provided which does not mention the coal, we are of the view

that Adjudicating Authority did not commit any error in rejecting the I.A(s) of

the Appellant where he prayed to be permitting him for lifting 2350 MT Coal.

The 2350 MT Coal was included in the subsequent auction held on 11.03.2022

Company Appeal (AT) (Insolvency) No. 891/2022 -4-

in favour of the Respondent No. 2. There are no good ground to entertain this

Appeal. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

Basant/nn

Company Appeal (AT) (Insolvency) No. 891/2022