Under Section 60(5) of Insolvency &

Bankruptcy Code, 2016

Melkar TTI Biofuels Limited

…Applicant/

Vs.

Gulshan Kumar Gupta & Others

…Respondent

In the matter of

C.P.(IB) No. 977/MB/2019

United Bank of India …Financial Creditor

Vs.

Gadhinglaj Agro Alchochem Limited

Corporate Debtor

Order delivered on: 12.03.2024

Coram:

Shri Prabhat Kumar Justice Shri V.G. Bisht

Hon’ble Member (Technical) Hon’ble Member (Judicial)

Appearances

For the Applicant : Mr. B.Gopalakrishnan, Advocate

For the Respondent : Mr. Soham Bhalerao, Advocate

CP (IB) 977/MB/C-I/2019 For State Tax Department : Mr. Amar Mishra, Advocate For the Liquidator : Mr. Navin Arora, Advocate ORDER Per: Prabhat Kumar, Member (Technical)

1. This Application IA 1040 of 2023 is filed by Melkar TTI Biofuels Limited u/s 60 (5) of the Insolvency and Bankruptcy Code, 2016 on 14.03.2023 in the liquidation proceeds of Gandhinglaj Agro Alchochem Limited (Corporate Debtor) seeking following reliefs:

a. The Tribunal be pleased to hold that the collection by Respondent no..

2 i.e. The Commissioner, Maharashtra Excise Department from the Applicant being the amount due and payable by the Corporate Debtor company which is under Liquidation is ipso facto void-ab-initio since it is a settled law that the auction purchaser namely the applicant is not liable for the dues of the Corporate Debtor and the said dues has to be collected in accordance with the law from either the Resolution Applicant or the Liquidator as the case may be’

b. Direct the Respondent No.2 to refund the amount of Rs. 43,75,091/-

(Rupees Forty Three Lakhs Seventy Five Thousand Ninety One Only)- paid by the Applicant under protest and as collected by the Respondent no. 2 towards the past dues arising from the Corporate Debtor who is under Liquidation;

c. Direct Respondent No. 2,3 and 4 i.e. The Commissioner Maharashtra Excise Department, Maharashtra State Electricity Distribution Company Limited, Kolhapur and Maharashtra Sales Tax CP (IB) 977/MB/C-I/2019 Department, Mumbai respectively to release their attachments and transfer the licenses, electricity meters, and mutate the land pertaining to the Applicant's purchase in the name of Applicant and not to proceed against the Applicant for any dues that may have arisen or payable pertaining to a period prior to the date on which the Applicant has acquired the Distillery plant along with the land and other fixtures pertaining to the said land including the right of way;

d. The Tribunal be pleased to hold and order that the Applicant being an auction purchaser as a going concern of the Distillery Plant and land appurtenant thereto is not liable for any dues which remains unpaid or which has arisen on account of the non-payment by the Corporate Debtor and the Applicant be protected from further such illegal claims by the Respondent No. 2 to 4;

e. This Tribunal may be pleased to restrain Respondent Nos. 2 to 4 from taking any steps against the Applicant to recover the dues, if any, which are payable by the Corporate Debtor for a period prior to the date on which the business of distillery manufacturing was sold to the Applicant;

f. That this Tribunal may pass such other orders which in the interest of the justice, equity and good conscience this Hon'ble Tribunal deems fit including imposition of cost on Respondents.

2. The Applicant company is the successful bidder in the case of an e-

auction conducted by the Respondent No. 1 who is the Liquidator of Gadhinglaj Agro Alcochem Ltd (in liquidation) on 23.07.2021 wherein the distillery business of the Corporate Debtor was sold to the Applicant as a going concern for a consideration of Rs.17,10,00,000/- (Rupees Seventeen Crores Ten Lakhs Only).

CP (IB) 977/MB/C-I/2019

2.1. The sale of the Distillery Manufacturing Business of the Corporate Debtor was confirmed by Respondent No. 1 vide Sale Certificate dated 27.10.2021 issued by Respondent No. 1 who is the liquidator of the Corporate Debtor. The Liquidator of the Corporate Debtor had issued a Possession Letter dated 27.1