The National Company Law Appellate Tribunal (“NCLAT”) in the case RMY Industries v Apple Industries Pvt. Ltd., the Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Technical Member, Dr. Alok Srivastava and the Technical Member, Mr. Barun Mitra observed while adjudicating an appeal filed and has held that the Adjudicating Authority is empowered to consider any application filed by the Liquidator or Successful Auction Purchaser, which may be arising with regard to terms and conditions of auction sale or the sale as going concern as per the Liquidation Regulation.
Backgrounds of the Case
The Corporate Debtor/Respondent, Apple Industries Pvt. Ltd was admitted into Corporate Insolvency Resolution Process (“CIRP”) and thereafter order for liquidation of Corporate Debtor was passed by the Adjudicating Authority. The Appellant, RMY Industries LLP was the Successful Auction Purchaser in the liquidation proceeding where assets were sold as going concern on ‘as is where is’ basis. An interim application was filled by the Appellant before the Adjudicating Authority seeking about 30 reliefs and concessions. In an order dated 01.08.2022, the Adjudicating Authority had rejected the application, while observing that no relief and concession can be granted. An appeal was filled by the Appellant before the NCLAT against the Order dated 01.08.2022.
NCLAT Decision
It was observed by the bench that in the NCLAT judgment passed in the case /s Shiv Shakti Inter Globe Exports Pvt. Ltd. vs. M/s KTC Foods Pvt. Ltd., Company Appeal (AT) (Ins.) No. 650 of 2020, with regard to liquidation sale as going concern Liquidator had filed application for certain relief, while relating to past dues and prayer for extinguishment of past/remaining unpaid outstanding liabilities, which was permitted.
It was opined by the bench 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 the sale as going concern as per the Liquidation Regulation. Thus, the bench had granted the Appellant liberty to file an appropriate application before the Adjudicating Authority, which may arise from the terms and conditions of the auction sale or the sale which is as going concern and which may be considered by the Adjudicating Authority.
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