IN THE NATIONAL COMPANY LAW TRIBUNAL

AHMEDABAD

COURT - 2

ITEM No.301

CP(IB) 149 of 2017

Order under Section 60(5) IBC

IN THE MATTER OF:

Sunil Kumar Agarwal Liquidator for Varia Engineering work ........Applicant

Private Limited

V/s ........Respondent

Kotak Mahindra Prime Limied

Order delivered on: 11/06/2024

Coram:

Mrs. Chitra Hankare, Hon’ble Member(J)

Dr. Velamur G Venkata Chalapathy, Hon’ble Member(T)

PRESENT:

ORDER

The case is fixed for pronouncement of order.

The order is pronounced in open Court vide separate sheet. -Sd- -Sd-

DR. V. G. VENKATA CHALAPATHY CHITRA HANKARE

MEMBER (TECHNICAL) MEMBER (JUDICIAL)

BEFORE THE ADJUDICATING AUTHORITY THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD (COURT - II)

With CP(IB) No. 149 / NCLT / AHM / 2017 (Under Section 60(5) of the Insolvency and Bankruptcy Code,2016.)

In the Matter of:

Shri Sunil Kumar Agarwal Liquidator of M/s. Varia Engineering Work Private Limited B 1203/1204 Sun Westbank, Near Shiv Cinema, Ashram Road, Ahmedabad-380009 ...Applicant Versus Kotak Mahindra Prime Limited

503-505, 5th Floor, Sakar-II, Near Ellis bridge, Opp. Town Hall, Ahmedabad-380006 …Respondent And in the matter of: Bank of Baroda “BoB”.

Corporate Financial Branch, Opp. Law Garden, Ellis bridge, Ahmedabad-380006 …Financial Creditor Versus M/s. Varia Engineering Work Private Limited

2005, Phase IV, GIDC, Vatva, Ahmedabad-382442.

…Corporate Debtor Order pronounced on 11.06.2024 CORAM:

MRS. CHITRA HANKARE HON’BLE MEMBER (JUDICIAL)

DR. V. G. VENKATA CHALAPATHY HON’BLE MEMBER (TECHNICAL)

Present:

For the Liquidator : Mr. Nandish Chudgar, Adv.

For the Respondent : Ms. Riya Navin, Adv, for Mr. Nachiket Mehta, Adv.

JUDGEMENT

1. The instant Application is filed by Sunil Kumar Agarwal (hereinafter referred as the ‘applicant’), Liquidator of M/s. Varia Engineering Work Private Limited (hereinafter referred as ‘Corporate Debtor’), Under Section 60(5) Insolvency & Bankruptcy Code 2016, seeking following directions against the Kotak Mahindra Prime Limited (hereinafter referred as ‘respondent’). To permit and direct the respondent to take over the possession of the 6 vehicles from the suspended board of directors, since the said vehicles do not form a part of the liquidation process and remain security interest in favour of the Respondent no. 1.

2. The brief facts of the case are summarised as under :-

a) Bank of Baroda “Financial Creditor” had filed an Application under Section 7 of the IBC, 2016 for initiation of the Corporate Insolvency Resolution Process against the Corporate Debtor before this Hon’ble Adjudicating Authority. Vide order dated 21.12.2017 this Adjudicating Authority admitted the corporate debtor into CIRP and appointed Mr. Ramubhai S Patel as IRP.

b) The IRP was confirmed as the RP in the 1st meeting of CoC. IA No. 197 of 2018 for extension of CIRP period was extended on 08.06.2018. Since no viable resolution plan was received by RP, CoC decided to go for liquidation. Accordingly RP filed an application bearing IA No. 362 of 2019 under Section 33 of the IBC. Vide order dated 22.07.2019 this Adjudicating Authority passed an order of liquidation and appointed applicant herein as a liquidator.

c) Erstwhile RP of the corporate debtor had also filed an application for non cooperation against the financial creditor and the suspended director of corporate debtor under Section 60(5) of IBC with a prayer seeking directions against the promoters/directors of the company to handover possession of the vehicles, Gold coins and cash to RP being assets/property of the corporate debtor illegally held promoters/directors for personal use. This Hon’ble Tribunal vide order dated 09.07.2019 in IA No. 101 of 2019 disposed of the application by allowing the prayers and directed the promoters/directors to handover said vehicles.

d) Despite order dated 09.07.2019 the promoter/directors did not handover the possession of vehicles and etc. Therefore the applicant has filed contempt petition against the suspended board of directors before this Adjudicating Authori