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2023 Supreme(Online)(NCLT) 1637
NATIONAL COMPANY LAW TRIBUNAL
Dr. Venkata Ramakrishna Badarinath Nandula, Shri Charan Singh, JJ
Palapala Ankamma Rao – Appellant
Versus
Punjab National Bank – Respondent
Ivn. P(IBC) 18/2023 | IA(IBC) 676/2023 | IA (IBC) 1155/2022 | IA (IBC) 1433/2022 | IA (IBC) 67/2023 | IA (IBC) 627 | IA (IBC) 410/2023 | CP (IB) No.299/7/HDB/2018
For the Appellants/Petitioners: Shri Y. Srinivas Murthy, Mr. P. Venkaiah Naidu
For the Respondents: Shri M. Sunil Kumar, Shri Y. Suryanarayana
The court declared that an agreement to sell does not confer ownership rights; only a registered sale deed can transfer property, particularly under the Insolvency and Bankruptcy Code during Corporate Insolvency Resolution Process.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 7 and 60(5) - Corporate Insolvency Resolution Process (CIRP) initiated against Corporate Debtor - Applicants, holders of sale agreements prior to CIRP admission, seek impleadment in the proceedings - Adjudicating Authority rules that mere agreement does not confer property rights; ownership requires registered sale deed - Application dismissed as the agreement holders are not necessary parties post-admission and the moratorium applies to all assets. (Paras 4-6.16)
(B) Moratorium - Enforceability of claims or transfer of assets of Corporate Debtor during CIRP prohibited under Section 14 - The initiation of insolvency proceedings renders previous agreements unenforceable until resolution. (Paras 6.9-6.13)
ORDER
IA (IBC) 1433/2022
Learned Counsel Mr. Raviteja or Respondent No. 4 present. The Learned Counsel representing the petitioner reported ready. Whereas, Learned Counsel representing the respondents reports not ready on the ground that Senior Counsel who is engaged in this matter is not available today, though it is not a ground for adjournment considering the submission, that the submissions will be made invariably on the next hearing date by the respondents. Matter adjourned to 11.08.2023 the date has chosen by the counsel for respondent.
IA (IBC) 410/2023
Learned Counsel Mr. Raviteja, for Respondent No.4 and 6, Learned Counsel Mr. Dilip Naik for Respondent Nos. 1 to 3 and Learned Counsel Mr. Sunil, for Respondent No.5 present. The Learned Counsel representing the petitioner reported ready. Whereas, Learned Counsel representing the respondents reports not ready on the ground that Senior Counsel who is engaged in this matter is not available today, though it is not a ground for adjournment considering the submission, that the submissions will be made invariably on the next hearing date by the respondents. Matter adjourned to 11.08.2023 the date has chosen by the counsel for respondent.
IA (IBC) 627/2023
Orders in IA No.627/2023 pronounced. In the result, this petition is allowed and Resolution Professional permitted to conduct the sale of the encumbered inventory and identified scrap of the Corporate Debtor through e-auction by following the due procedure. Accordingly, this petition is allowed with no costs.
IA (IBC) 1155/2022
Orders pronounced. Recorded vide separate sheets. In the result, this petition is dismissed. No costs.
IA (IBC) 67/2023 in 1155/2022
This IA No. 67/2023 is disposed of with the observation that, since deposit of the sum of Rs. 7,50,000/- by each of the petitioners totalling to Rs.30,00,000/- with the Financial Creditor (PNB) vide the DD Nos. 275324,713609,501341 and 030063 all dated 25.11.2021 is not denied or disputed by the Financial Creditor, in the light of peculiar facts and circumstances of this case, we direct PNB to return the said amount to the petitioners together with interest at 10% per annum from the date of the said deposit till the date of repayment, in the event the petitioner makes a request for return of the same, within 15 days from the date of such request.
IA (IBC) 676/2023
Orders in IA No.676/2023 pronounced, recorded vide separate sheets. In the result this IA is disposed with the observation that, since deposit of the sum of Rs. 7,23,610/- by the petitioner with the Financial Creditor (PNB) vide the DD No. 032077 dated 12.01.2022 is not denied or disputed by the Financial Creditor, in the light of peculiar facts and circumstances of this case, we direct PNB to return the said amount to the petitioners together with interest at 10% per annum from the date of the said deposit till the date of repayment, in the event the petitioner makes a request for return of the same, within 15 days from the date of such request.
Ivn. P (IBC) 18/2023
As IA No.676/2023 is dismissed this Ivn. P No. 18/2023 becomes infructuous.
ORDER
1. This Application is filed seeking to implead the Applicants herein in main CP (IB) No. 299/7/HDB/2018 as Respondents and for directions to Respondents herein to complete the sale transaction in favour of the Applicants by execution and registration of sale deeds in respect of the land mentioned in the agreements of sale.
2.1 It is stated that the 2nd Respondent/NCS Sugars Ltd. (Corporate Debtor) availed loan from Consortium of Banks i.e. Andhra Bank, Indian Overseas Bank and Oriental Bank of Commerce (currently PNB). Out of the 3 banks PNB has got exclusive security of 229 acres of land situated in Anantapur District.
2.2. The 2nd Respondent/Corporate Debtor in order to meet part of the OTS amount, requested PNB to give No-objection for sale of the said land, kept as security with PNB, for which valuation of the land was done by approved Valuer.
2.3 The Applicants herein have agreed
