IN

CP (IB) No.1560/KB/2018

An application under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 in

connection with explanation to sub-Regulation (1) of Regulation 37A of the Insolvency

and Bankruptcy Board of India (Liquidation Process) Regulation, 2016.

In the matter of:

Union Bank of India

… … Financial Creditor

Versus

Space Matrix Private Limited

… … Corporate Debtor

And

In the matter of:

Mr. Soumitra Lahiri, Insolvency Professional, Registration No.: IBBI/IPA-001/IP- P00734/2017-2018/11232, of Flat 14D & E, Tower 32, Genexx Valley, Joka, Diamond Harbour Road, Kolkata – 700104, e-mail: slahiri0207@gmail.com, acting as

Liquidator of Space Matrix Private Limited.

… … Applicant/Liquidator

Date of Pronouncement of Order: 10^th April, 2024

CORAM:

SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL)

SHRI D. ARVIND, HON’BLE MEMBER (TECHNICAL)

Appearance (via video conferencing/physically)

Mr. Vikram Wadehra, Adv. ] For the Liquidator

Mr. Mayukh Roy, Adv. ]

Mr. Raja Satyajit Banerjee, Adv. ] For Falta SEZ

Mr. Krishnika Chatterjee, Adv. ]

Mr. Mainak Bose, Adv. ] For Suspended Management

Ms. Sutapa Mitra, Adv. ]

IN CP (IB) No.1560/KB/2018 Ms. Saloni Agarwal, Adv. ] For Respondent No.10 Mr. Rahul Parasrampuria, Pr.CS ]

Mr. K Thaker, Adv. ] For the Shareholders Consultation Committee Ms. Sreenita Thaker, Adv. ]

O R D E R

Per: Bidisha Banerjee, Member (Judicial)

1. The Court is congregated through hybrid mode.

2. Learned Counsel for the Liquidator present.

3. This application has been preferred by the Liquidator of Space Matrix Private Limited, the Corporate Debtor to seek the following reliefs:

a. That this Hon’ble Tribunal be pleased to pass an order declaring assets valued at Rs.27,18,55,780/- (Rupees Twenty-seven crore eighteen lakh fifty- five thousand and seven hundred only) as detailed in paragraph (m) above as “Not Readily Realizable Asset” as defined in explanation to sub-Regulation (1) of Regulation 37A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

b. For such further and other reliefs as this Hon’ble Tribunal may deem fit and proper in the facts and circumstances of this case.

4. Facts of the Case:

a. It is the contention of the Liquidator that CIRP commenced against the Corporate Debtor vide order dated 28^th August, 2019, when Mr. Sanjay Kumar Gupta appointed as IRP. He is subsequently confirmed as Resolution Professional.

b. The Committee of Creditor in the 5^th Meeting held on 14^th January, 2020, resolved to liquidate the Corporate Debtor and in terms of the order dated IN CP (IB) No.1560/KB/2018

24^th February, 2020, a liquidation order was passed and the Applicant, Mr.

Soumitra Lahiri was appointed as Liquidator of the Corporate Debtor.

c. It is submitted that the Applicant as Liquidator appointed a Forensic Auditor to carry out forensic investigation into the affairs of the Corporate Debtor. The Forensic Audit Report indicates transactions violating Section 43 and Section 66 of the IBC, 2016 for which IA(I.B.C)/320(KB)2021 has been preferred to seek appropriate directions.

d. The Liquidator contends that the liquidation process pertaining to the Corporate Debtor is about to conclude. Some assets reported in IA(I.B.C)/320(KB)2021 need to be declared as “not readily realizable assets” as defined under Regulation 37A sub-Regulation (1) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016.

e. It is submitted that the Forensic Report reveals that as on 28^th August, 2019 being the date of commencement of CIRP against the Corporate Debtor, the Corporate Debtor has invested in the shares detailed by way of a chart as under:

IN CP (IB) No.1560/KB/2018 f. It is submitted that the Auditor has highlighted the scripts pertaining to investments indicated in each of the said companies have not been furnished in spite of repeated requests due to which veracity of the statements in relation to the investments could not be ascertained.

g. Further, as no response was forthcoming from Respondent Nos.1 a