Phoenix ARC Pvt. Ltd. Vs Kuldeep Verma Liquidator of KS Oils Ltd. & Ors. (NCLAT Delhi)
NCLAT Delhi held that Regulation 21A(2)(a) mandates payment of deposit within 90 days from liquidation commencement date. Since regulation 21A (2)(a) are not complied by the security creditors, security interest will become part of liquidation estate of the Corporate Debtor.
Facts- The liquidation process against the Corporate Debtor (“CD”) KS Oils Ltd. commenced. The Appellant claimed security interest in the immovable property of 12.84 acres in District Purba, Medinipur, Mauza Debhog J.L. No.149 and all plant and machinery attached to it or permanently fastened to anything attached. In Form-D, the Appellant did not relinquish its security interest for “Haldia Unit”, whereas security interest in respect of all other securities were relinquished.
On 14.07.2023, the Liquidator communicated to the Appellant that Haldia Unit has become part of the Liquidation Estate by virtue of Section 21A of IBBI (Liquidation Process) Regulations, 2016 (“Liquidation Process Regulation”). On 17.07.2023, the Appellant objected to the email dated 14.07.2023 of the Liquidator and submitted that it has received two offers of Rs.35 crores and Rs.40 crores for Haldia Unit. After communication dated 14.07.2023, the Liquidator issued a Sale Notice on 19.07.2023 for Haldia Unit for reserve price of Rs.74.21 crores.
