Section 230 of Companies Act, 2013 which envisages one valuer cannot be the basis to bypass Liquidation Process Regulation 35 | Merely a Corporate Debtor has no valid or any marketable title the property, the value of the property cannot be described as Zero, the Registered Valuers are to value the property | Sharing of Valuation Reports with Potential Resolution Applicants by Liquidator is quite contrary to Liquidation Process Regulation 34(4) – Kineta Global Ltd. in consortium with Power Mech Projects Ltd. Vs. IDBI Bank Ltd. and Ors. – NCLAT Chennai
In this landmark decision, Hon’ble NCLAT holds that:
(i) The requirement of Regulation 35 of the liquidation process Regulations is a separate one from the process mentioned under Section 230 of the Companies Act, 2013 and Section 230 of the Companies Act, 2013 which envisages one valuer cannot be the basis to by pass the Regulation 35 of liquidation process Regulations.
(ii) Section 230 of the Companies Act, 2013 is quite broader and wider in its purview and the Code, 2016
(iii) Merely because in respect of the title of the property, if a Corporate Debtor has no valid or any marketable title, ipso facto, the value of the property cannot be described as Zero. The Registered Valuers are to value the property.
(iv) The Sharing of the Valuation Reports with the Potential Resolution Applicants by the Liquidator is quite contrary to the Regulation 34(4) of the Liquidation Process Regulations.