25/09/2023

If required, Supreme Court can take assistance from Resolution Professional(RP), in case an appeal(s) is preferred by CoC/third party. RP should not have filed appeals and should have maintained a neutral stand, it is for the aggrieved parties/CoC to take appropriate proceedings or file an appeal before Supreme Court – Regen Powertech Pvt. Ltd. Vs. Giriraj Enterprises and Anr. – Supreme Court

Hon’ble Supreme Court has dismissed the appeal field by Resolution Professional against the NCLAT order in Giriraj Enterprises Vs. Regen Powertech Pvt. Ltd. (2023) ibclaw.in 569 NCLAT and has held that the Resolution Professional should not have filed the present appeals. The Resolution Professional should have maintained a neutral stand. It is for the aggrieved parties, including the Committee of Creditors of Regen Powertech Private Limited (RPPL) and Regen Infrastructure and Services Private Limited (RISPL), to take appropriate proceedings or file an appeal before this Court. Recording the aforesaid, the present appeals preferred by the Resolution Professional are dismissed as not entertained. If required and necessary, the Court can take assistance and ascertain the facts from the Resolution Professional, in case an appeal(s) is preferred by the Committee of Creditors or a third party.

If required, Supreme Court can take assistance from Resolution Professional(RP), in case an appeal(s) is preferred by CoC/third party. RP should not have filed appeals and should have maintained a neutral stand, it is for the aggrieved parties/CoC to take appropriate proceedings or file an appeal before Supreme Court – Regen Powertech Pvt. Ltd. Vs. Giriraj Enterprises and Anr. – Supreme Court Read Post »

NCLT allows petition giving liberty to the liquidator to reduce the reserve price by 20% from the previous reserve price – Bank of Maharastra Vs. SVSVS Projects Pvt. Ltd. – NCLT Hyderabad Bench

This application is filed in terms of Regulation 31A (7) of the IBBI (Liquidation Process) Regulations 2016 by the Liquidator seeking for leave to reduce the reserve price by 20%, on the grounds that the two earlier sales remained unsuccessful, and that the assets to be sold are receivable only. Taking into consideration the fact that two sales at the reserve price as arrived by the liquidator remain unsuccessful and the assets to be sold being receivables only, any further delay in sale of receivables will result in deterioration of the value of liquidation assets, in the interest of liquidation, we allow this petition, giving liberty to the liquidator to reduce the reserve price by 20% from the previous reserve price with a direction that liquidator shall forthwith initiate steps for sale of the receivables as expeditiously as possible by following the due procedure.

NCLT allows petition giving liberty to the liquidator to reduce the reserve price by 20% from the previous reserve price – Bank of Maharastra Vs. SVSVS Projects Pvt. Ltd. – NCLT Hyderabad Bench Read Post »

Whether the amount under an Arbitration Award which has been passed post initiation of liquidation proceedings can be treated as an “asset held in trust” for the applicant based on the agreement – Span Engineers – NCLT Hyderabad Bench

NCLT Hyderabad Bench held that:
(i) In so far as the plea of the liquidator that since the award amount was received after commencement of liquidation process, the same will be a part of liquidation estate in our considered view does not hold good, as these funds for which arbitration award has been passed were not spent during the liquidation period but were incurred much earlier to initiation of liquidation proceedings and are governed by specific agreement for a specific project.
(ii) Therefore, in view of our findings as above, we are of the firm view that amount received by the corporate debtor under the above mentioned arbitration award is the amount held in trust for the applicant, as such the same cannot be treated as liquidation estate of the corporate debtor, consequently, the liquidator is hereby, directed to accept the claim of the applicant for the sum of Rs. Rs.1,31,55,889/- and make payment forthwith.

Whether the amount under an Arbitration Award which has been passed post initiation of liquidation proceedings can be treated as an “asset held in trust” for the applicant based on the agreement – Span Engineers – NCLT Hyderabad Bench Read Post »

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