Anil Kohli Liquidator of Vegan Colloids Limited Vs Punjab National Bank (NCLAT Delhi)
NCLAT Delhi held that all assets listed in the Corporate Debtor’s balance sheet are included in the Liquidation Estate u/s. 36 of the Insolvency and Bankruptcy Code, 2016. Further, upon liquidation, dues must be distributed strictly according to the waterfall mechanism outlined in Section 53 of the Code.
Facts- On 21.11.2017, the Bank of India filed Company Petition u/s. 7 of the IBC against CD-M/s Vegan Colloids Limited. The petition was admitted by the Adjudicating Authority, initiating CIRP. However, 10.10.2018, the CD-M/s Vegan Colloids Limited was directed to undergo liquidation, and the Appellant was appointed as the Liquidator.
During liquidation, Respondent 1- PNB filed a claim of ₹18,17,55,581/- on 17.12.2018, which was admitted by the Liquidator. Respondent No. 1- PNB relinquished its security interest to the Liquidation Estate, agreeing to receive proceeds from the asset sale. The Appellant initiated statutory audits for FY 2018-19 and obtained the audited financials on 08.01.2020. Discrepancies in financials prompted the Appellant to seek clarifications from Personal Guarantors – Respondents No. 2 and 3, and the late Mr. Bajrang Dass Aggarwal, who provided explanations on 25.02.2020.
The Appellant-Liquidator claimed that ₹4,50,44,500/- deposited with the Respondent No. 1-PNB formed part of the Liquidation Estate and requested its refund on 26.02.2020 with a reminder on 06.03.2020. As the Respondent 1-PNB did not comply, the Appellant filed an application before the AA on 26.06.2020, seeking directions to refund ₹4,50,44,500/- to the liquidation account, arguing that the amount was part of the Corporate Debtor’s assets. On 16.06.2023, the Adjudicating Authority dismissed the Application, holding that the amount had been deposited by guarantors and was not an asset of the Corporate Debtor, which led the Appellant to file the present appeal on 06.07.2023, challenging the decision.
