Case Law Details
Punjab National Bank Vs NCS Sugars Ltd (NCLT Hyderabad)
NCLT Hyderabad held that the provisions of the Insolvency & Bankruptcy Code, 2016 (IBC) override the provisions of the State enacted law, such as, Andhra Pradesh Revenue Recovery Act, 1864.
Facts- The Corporate Debtor is engaged in the business of cane crushing and production of sugar and associated by-products. Corporate Debtor purchases sugarcane from farmers. Corporate Debtor committed default in paying the price for the sugarcane supplied by farmers to the units of the corporate debtor. Consequently, respondents no.2 and 3 initiated proceedings under Andhra Pradesh Revenue Recovery Act, 1864, to sell the immovable property to pay the amounts due to farmers.
Notably, public auction was conducted, wherein 4th respondent was declared as the highest bidder and Earnest Money Deposit (EMD) was paid by the 4th respondent. Thereafter, order was passed in admitting the Corporate Debtor into CIRP. Said Company Petition was filed by Punjab National Bank (erstwhile Oriental Bank of Commerce). The respondents did not inform that a Sale Certificate has been issued. The applicant was apprised of the above development. The Balance sale consideration of Rs.17,04,25,000/- was deposited post-commencement of CIRP.
Conclusion- Held that the provisions of the IBC override the provisions of the State enacted law, such as, Andhra Pradesh Revenue Recovery Act, 1864.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
