ORDER

(Physical Hearing )

This application has been filed by liquidator of Srivatsa International Private Limited under Section 60(5) of Insolvency and Bankruptcy Code 2016.

a) To Declare the Building Situated at No.2-7B, Trivandrum Road, Azhagiya Mandapam, Mulagumoodu P.O. as CD's property, consequently direct the 3rd Respondent to hand over the said Property to the Liquidation Estate of the CD;

b) To declare the said acts of the Respondent No.s 1 to 2 are fraudulent in nature:

c) To direct the ICICI Bank/4th Respondent to lift the Attachment Order made in the above-mentioned property and further declare the same is null and void

d) To Punish the Respondent No.s 1 to 2 as per Code: and

e) To pass such orders or further orders which deem to be fit and proper in the interest of justice.

APPLICANTS SUBMISSIONS

2.1 The corporate debtor is admitted to CIRP vide order dated 04.12.2020 by an application filed by the financial creditor Ligori Valan Irudhayaraj, on initiation of CIRP the Coc on detail deliberations decided to recommend the liquidation of the CD with 74.71% voting power.

2.2 It is submitted that the Liquidator to take into his custody of all the assets and properties of the Corporate Debtor found various transactions which are done to defraud the creditors and suspended Directors of the CD, It is stated that suspended directors did not hand over any documents till date to the applicant to suppress the vital facts of the CD.

2.3 It is submitted that as per the last audited balance sheet for the year 2017-18, the following assets are shown in the fixed assets Schedule: - Land- Rs.42,40,451- Buildings - Rs.23,33,42,247- It is stated that the suspended directors of the corporate debtor has not handed over any Lands and Buildings except one showroom and one workshop situated at Thiruvananthapuram. It is submitted that the corporate debtor has incurred expenses on Buildings every year and availed depreciation allowance on buildings and reduced his Income Tax Liability.

2.4 The Liquidator has detailed the land&building and the ownership status as follows.

2.5 It is submitted that the Corporate Debtor has incurred expenses on Buildings every year and availed Depreciation Allowance on Buildings and reduced his Income Tax Liability the details are extracted herein under

2.5 It is submitted that the corporate debtor owned a Showroom at Azhagiya Mandapam, Thakkalay Village, Kanyakumari District, It is stated that the land was purchased by Mrs.R.L.Rekha in the year 2012 bearing in RS No. is 377 / 23B of Thackalay Village, Kalkulam Taluk, Kanyakumari District, It is stated that the showroom was constructed in the year 2016 using the Reserve Funds of the Company and availing Term Loans from the Banks.

2.6 It is submitted that the above land and building was included in the fixed assets schedule of the company and the depreciation was calculated on the building and availed depreciation allowance year on year and the Term loan availed for construction of the building was refunded from the funds of the Company.

2.6 It is submitted that the land and building were mortgaged to Yes Bank by Mrs.R.L. Rekha for the loan facility availed from 3rd Respondent/Yes Bank by Srivatsa International Private Limited ("CD") as Personal Guarantee during the year 2018.

2.7 It is submitted that that the building was constructed from the funds of the company and the owner of the building is CD, It is stated that mortgage deed made by them with the Yes Bank for Personal Guarantee using the above property and handing over the above assets to the 3rd Respondent.

2.8 It is submitted that Subsequent to the default made by the CD and its suspended directors, 3rd Respondent has taken over custody of the above property in the year 2020 under SARFAESI.

2.9 It is submitted that ICICI Bank has obtained an attachment order on the alleged property through the Debts Recovery Tribunal, Madurai on 18.10.2019 in O.A.No.35/2019 for the outstanding loans due to them from the corporate debtor an