Volkswagen Finance Private Limited vs Rishabh Chand Lodha
- CitationComp. App. (AT) (Ins.) No. 178 of 2022
Ratio decidendi
The rule this decision rests on
The vehicle in question, once it forms part of the liquidation estate of a corporate debtor, is an asset of that estate; the Adjudicating Authority's determination that it so forms part is not open to challenge on appeal. Where the direction to hand over possession of an asset rests on the premise that the asset is in the appellant's possession, and that premise is shown to be wrong or the direction has been overtaken by events (here, the vehicle having been traced and the liquidator taking possession), the direction becomes infructuous and need not be enforced against the appellant.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Volkswagen Finance Pvt Ltd. ....Appellants Vs.
Rishabh Chand Lodha (Liquidator of FLPL Logistics ...Respondent Ltd.) For Appellant: Mr. Vardhman Kaushik, Mr. Nishant Gautam, Mr. Dhruv Joshi, Mr. Prafful Saini, Advocates. For Respondent: Mr. Abhishek Naik, Advocate for Liquidator. Mr. Rishabh Chand Lodha (Liquidator in person)
ORDER
(Through Virtual Mode)
23.02.2022: Heard Learned Counsel for the Appellants as well as
Learned Counsel for the Respondent.
2. This Appeal has been filed against the order dated 21.12.2021 passed
by the Adjudicating Authority (National Company Law Tribunal), New Delhi
Bench, Court-III by which the Adjudicating Authority has directed that the
Audi Q8 bearing Registration No. HR 26DE 6789 shall become the part of the
liquidation estate and further direction was that Respondent (Appellant
before us) to immediately handover the possession of the aforesaid assets to
the Liquidator.
2
3. Learned Counsel appearing for the Appellants submits that the
vehicle was not in a possession of Appellants, hence, direction to hand over a
possession could not have been issued by the Adjudicating Authority.
4. Learned Counsel for the Respondent submits that now the vehicle has
been traced out with the former Director and the Respondent is in process of
taking possession.
5. In view of the aforesaid, we are of the view that as far as the part of the
order of the Adjudicating Authority making the vehicle as an asset of the
liquidation estate, no exception can be taken but the direction to hand over
the possession has become infructuous since the vehicle has already been
traced out and it is being taken possession by the Respondent.
6. The Appeal is disposed of accordingly.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical) Anjali/nn
Comp. App. (AT) (Ins.) No. 178 of 2022
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