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The NCLAT has upheld the sooner order handed by the Mumbai Bench of NCLT, which had declined Reliance Realty’s plea and mentioned the liquidation technique of Independent TV (formally referred to as Reliance Big TV) must be accomplished in a time-bound method and within the shortest doable time.
A two-member Bench mentioned the liquidation course of shouldn’t be “disrupted and derailed by the Appellant (Reliance Realty) who for no cogent reasons had never agitated the issue of ownership of assets lying in the leased premises”.
“We do not find any infirmity in the impugned order allowing the Liquidator to remove all moveable assets of the Corporate Debtor lying at the leased premises and in restraining the Appellant from obstructing the Liquidator and successful bidder from accessing these moveable assets,” mentioned NCLAT.
Reliance Realty had leased a part of DKAC premises (Dhirubhai Ambani Knowledge City) together with pre-package infrastructure services on November 27, 2017 to theIndependent TV (company debtor) to run its Direct to Home (DTH) enterprise and for storage of excellent.
Independent TV had acquired the DTH enterprise from the group following the execution of a Share Purchase Agreement on November 27, 2017 together with a draft settlement for premise use. It paid service costs together with rental, electrical energy and upkeep dues until October 2018 and later did not make well timed funds.
On February 26, 2020, insolvency proceedings have been initiated towards it and all of the property have been handed over to its Resolution Professional by its CEO as per the provisions of the Insolvency & Bankruptcy Code (IBC).
As it did not discover a purchaser, NCLT on March 17, 2023, directed initiation of liquidation of Independent TV, and an e-auction discover was issued.
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However in liquidation, Reliance Realty declined permission to examine potential bidders, the property of the corporate. It contended that the Independent TV had did not pay rental costs for the premises for the final 5 years and demanded reimbursement of rental costs together with electrical energy costs earlier than extending additional assist and likewise restricted inspection.
Meanwhile, Shree Sai Baba Ship Breaking Company emerged because the Successful Auction Purchaser (SAP) for property of Independent TV, following which a sale certificates and possession memo comprising of 1,874 items of property/stock was handed over on December 10, 2024.
Later, Reliance Realty approached NCLT through the ongoing CIRP for restoration of excellent rental and different dues. However, the National Company Law Tribunal (NCLT) directed Reliance Realty to permit the liquidator and SAP to entry the leased premises to dismantle/take away the property of the company debtor and to not trigger any obstructions.
This was subsequently challenged by Reliance Realty earlier than the appellate tribunal NCLAT. It contended that NCLT erroneously allowed the Liquidator to take away property mendacity on the leased premises which additionally included the property owned by Reliance Communication merely on the presumption that property/items mendacity on the premises through the CIRP is enough to determine possession in favour of the Corporate Debtor.
However, this was additionally rejected by NCLAT observing that NCLT, whereas passing the order, has not solely taken into consideration the developments within the matter throughout CIRP and liquidation but in addition the site-visit studies of the liquidator and the truth that the products/property have been within the possession and management of the Corporate Debtor.
The erstwhile Resolution Professional through the CIRP (company insolvency decision) proceedings had already performed a good and clear examination to determine the precise possession of the property mendacity within the leased premises whereas taking custody and management of the property of the Corporate Debtor.
“This was not challenged by the RCom or the Appellant (Reliance Realty during the CIRP. Thereafter also when the Liquidator took control and possession of the goods/assets lying in the leased premises, this was also not objected to by the Appellant until completion of the auction process,” mentioned NCLAT.
Moreover, Reliance Realty was not a celebration to the SPA, by way of which the DTH enterprise was transferred to Independent TV.
“We are therefore persuaded to agree with the Respondent No.1 (Liquidator of Independent TV) that if any party should actually have been aggrieved by the impugned order, it should have been the RCom, which was the signatory to the SPA but is currently in liquidation. It has been submitted by the Respondent No.1 that though RCL is currently in liquidation, the Liquidator-Respondent No.1 has not received any intimation from the Liquidator of the RCL in this regard, claiming ownership of the assets lying in the leased premises,” NCLAT famous down in its order.
