The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in RMY Industries LLP v Apple Industries Pvt. Ltd., has held 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 sale as going concern as per the Liquidation Regulation.
Apple Industries Pvt. Ltd. ("Corporate Debtor/Respondent") was admitted into Corporate Insolvency Resolution Process ("CIRP") and thereafter order for liquidation of Corporate Debtor was passed by the Adjudicating Authority. RMY Industries LLP ("Appellant") was the Successful Auction Purchaser in the liquidation proceeding where assets were sold as going concern on 'as is where is' basis. The Appellant had filed an interim application before the Adjudicating Authority seeking about 30 reliefs and concessions. The Adjudicating Authority vide an order dated 01.08.2022 had rejected the application, while observing that no relief and concession can be granted. The Appellant filed an appeal before the NCLAT against the Order dated 01.08.2022.
Decision Of The NCLAT
The Bench observed that in the NCLAT judgment passed in M/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, relating to past dues and prayer for extinguishment of past/remaining unpaid outstanding liabilities, which was permitted.
The Bench opined 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 sale as going concern as per the Liquidation Regulation. The Bench 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 sale as going concern, which may be considered by the Adjudicating Authority.
Case Title: RMY Industries v Apple Industries Pvt. Ltd.
Case No.: Company Appeal (AT) (Insolvency) No. 1114 of 2022
Counsel For Appellant: Mr. Gaurav Gupta and Mr. Samyak Gangwal, Advocates.