Narottamka Trade & Vyapaar Pvt. Ltd. Vs SPP Insolvency Professionals LLP (NCLAT Chennai)
Considering Scheme of Arrangement u/s. 230 not permitted after process of e-auction sale of Corporate Debtor
NCLAT Chennai held that after finalization of process of e-auction sale of Corporate Debtor, it cannot be permitted to consider Scheme of Arrangement proposed under section 230 of the Companies Act.
Facts- M/s. Kamachi Industries [Corporate Debtor] was admitted into Corporate Insolvency Resolution Process (CIRP) on an application u/s. 7 of I & B Code, 2016, filed by State Bank of India on account of non-payment of debt by an order of NCLT, Chennai, dated 19.02.2020. As no resolution plan got approved, CoC voted for Liquidation on 14.09.2021 and the Tribunal allowed the application for liquidation vide its Order of 09.12.2022 and appointed the Liquidator.
The Liquidator formed the Stakeholders Consultation Committee (SCC), got conducted fresh valuation of the Corporate Debtor, prepared the Asset Memorandum and also issued a Public Announcement on 16.10.2023 for sale of the Corporate Debtor as a going concern both under Regulation 32 (e) or 32A or for the Scheme of Arrangement or Compromise u/s. 230 of the Companies Act, read with Regulation 2B of the IBBI (Liquidation Process) Regulations, 2016.
