Successful Auction Purchaser entitled for certain reliefs to run corporate debtor as going concern

Punjab National Bank (International Limited) Vs Perfect Day INC. (NCLAT Delhi)

NCLAT Delhi held that the Successful Auction Purchaser is entitled to receive certain reliefs and concessions to run the Corporate Debtor as going concern.

Facts- On an Application filed by Andhra Bank u/s. 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), the Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor by order dated 11/06/2018.

The Resolution Professional (RP) made publication inviting Expression of Interest (EoI) from the interested Applicants. No Resolution Plan could be approved in the CIRP of the Corporate Debtor.  An Application u/s. 12A was filed by the Promoters to withdraw the CIRP. The Adjudicating Authority vide order dated 08.05.2019, dismissed the Section 12A Application and directed for liquidation of the Corporate Debtor u/s. 33, sub-section (1) of the IBC.

The Adjudicating Authority also observed that as the Corporate Debtor is a going concern, employing more than 800 employees, the Corporate Debtor be liquidated as per the provisions of Section 32(b) & (e) of the IBBI (Liquidation Process) Regulations, 2016. By a subsequent letter dated 13.05.2019, Dr. Mamta Binani, was appointed as a Liquidator.  The order of the liquidation remained abeyance, in pursuance of the order passed by the NCLAT and the order passed by the Supreme Court of India.

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