The Tribunal affirmed that a successful bidder is immune from pre-insolvency liabilities under Section 32A of the IBC, supporting timely liquidation and asset maximization despite conflicting asset attachments.

ORDER

Per: Bidisha Banerjee, Member (Judicial):

1. This Court is congregated through a hybrid mode.

2. Learned Counsels for both parties were heard at length.

3. The instant application being I.A. (IB) No. 1061/KB/2023, has been preferred by a Mr. Anil Goel (Liquidator- M/s Varrsana Ispat Ltd) under section 35(1)(N) and section 60(5) of the Insolvency and Bankruptcy Code, 2016, for brevity “I&B Code” against the respondent Stata Mater Investments Limited & Anr. seeking the reliefs, waivers and concession.

4. Factual Matrix:

4.1The Corporate Debtor, M/s Varrsana Ispat Limited, was admitted into corporate insolvency resolution process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016 by order dated 18.07.2017 passed by this Tribunal. On failure of the resolution process, liquidation proceedings were initiated against the Corporate Debtor vide order dated 06.08.2019, and Mr. Anil Goel was appointed as the Liquidator.

4.2Prior to the commencement of CIRP, the Directorate of Enforcement (ED), Ministry of Finance, Government of India, had initiated proceedings under the Prevention of Money Laundering Act, 2002 (PMLA) against certain promoters and directors of the Corporate Debtor. In connection with the same, immovable and movable properties of the Corporate Debtor were provisionally attached under Section 5 of the PMLA by way of Provisional Attachment Order (PAO) No. 08/2017/1071 dated 10.07.2017.

4.3The Provisional Attachment Order was confirmed by the Adjudicating Authority under the PMLA by its order dated 28.11.2017. Thereafter, the attached properties were continued to be held by the ED even after initiation of CIRP and liquidation.

4.4In order to secure the value of the Corporate Debtor’s assets and complete the liquidation process effectively, the Liquidator filed IA No. 575/KB/2020 under Section 35(1)(n) of the IBC seeking permission to include the attached properties in the liquidation estate and to sell them in accordance with the provisions of the Code.

4.5This Tribunal, vide order dated 22.07.2020, granted liberty to the Liquidator to proceed with the sale of the Corporate Debtor as a going concern, including the properties attached by the ED, subject to the outcome of any proceeding in higher judicial forum.

4.6The said order dated 22.07.2020 was challenged by the ED by way of Writ Petition No. 7962 of 2020 before the Hon’ble Calcutta High Court, which granted an interim stay on the operation of this Tribunal’s order.

4.7The Liquidator filed Special Leave Petition (Civil) No. 4629 of 2021 before the Hon’ble Supreme Court challenging the maintainability of the writ petition. The Supreme Court, vide order dated 26.03.2021, granted liberty to the Liquidator to raise the issue of maintainability before the High Court.

4.8In view of the judgment of the Hon’ble Supreme Court in Asian Resurfacing of Road Agency v. CBI, (2018) 16 SCC 299, the interim order of stay granted by the Hon’ble Calcutta High Court got vacated on 31.03.2021.

4.9Thereafter, the Stakeholders’ Consultation Committee (SCC), in its meetings dated 17.06.2022, 29.08.2022, and 03.11.2022, resolved to proceed with the sale of the Corporate Debtor as a going concern. Pursuant to these resolutions, the Liquidator initiated an e-auction process.

4.10 In the e-auction conducted on 17.03.2023, Stata Mater Investments Ltd. emerged as the highest bidder with a bid amount of Rs. 409.20 crores. A Letter of Intent was issued on 06.04.2023 by the Liquidator, and the successful bidder has already remitted a portion of the consideration amount.

4.11 As per Clause 8.2 of the