Name of the Case – Punjab National Bank v. Amrit Hatcheries Pvt Ltd. &ors.
Citation – (2021) 9 SCC 1
Case No. – C.A. No. 002682 – / 2022
Date of Decision – 22 Mar, 2024
Name of the Appellant – Punjab National Bank (PNB)
Name of the Respondent – Amrit Hatcheries Private Limited & Ors.
Facts of the Case
The current case is instituted based upon the liquidation of Amrit Hatcheries Pvt. Ltd., being the Corporate Debtor, “CD” under the Insolvency and Bankruptcy Code, 2016 (IBC).
Proceedings under the SARFAESI Act was initiated on 19.07.2017. Auction sale notice issued on 27.07.2019, auction conducted on 17.08.2019.Bank claims sale confirmed on 19.08.2019.
Upon a petition for insolvency by an operational creditor, the CIRP (Corporate Insolvency Resolution Process) commenced on 20.08.2019, as the Corporate Debtor had committed a default of a financial nature. The moratorium was declared u/s. 14 of IBC[1]. PNB, being the largest of the secured creditors holding a majority of the voting share at 83%, had advanced loans to the CD and possessed security over two very important assets: the ‘Howrah Property’ and the ‘Bankura Property’.
Before the invocation of CIRP, PNB had issued e-auction sales, as discussed above against the above referred properties under the SARFAESI Act, 2002 (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) in its attempt for recovering the debt due from Debtor. Howrah Property was sold through e-auction in favour of Haldiram Incorporation Pvt. Ltd., while Bankura Property was sold through e-auction to Skylark Feeds Pvt. Ltd. Each of the buyers had received sale certificates from PNB as the entire consideration was received by PNB prior to CIRP. However, once CIRP initiates, the Resolution Professional (RP) takes control of the Howrah Property and contests the genuineness of such sales.
Full payment for auction sale made on 03.09.2019 and the sale certificate was issued, after moratorium declaration upon the commencement of CIRP.
[1]Insolvency and Bankruptcy Code, No. 31 of 2016, § 14, Acts of Parliament, 2016 (India).