Appellant claims that the Liquidator instead of reviving the Company through Settlement sought to close the business of the Company

An appeal was lodged against the liquidator of Hind Motors India Ltd. The appellant, a former director, argued that the liquidator should have pursued company revival through settlement under Section 230 of the Companies Act, 2013, rather than proceeding with the closure of the business. The liquidator's decision to sell off company assets, such as spare parts, was challenged, leading to a rejection of the appellant's application by the Adjudicating Authority.

NATIONAL COMPANY LAW APPELLATE TRIBUNAL
NEW DELHI
Company Appeal (AT) (Insolvency) No. 875 of 2019

IN THE MATTER OF:

Ashish Mohan Gupta,
Residing at
House No. 161, Sector 27-A
Chandigarh …Appellant.

 Versus

The Liquidator of M/s. Hind Motors
India Ltd (In Liquidation)
Having his address at
Plot No. 9,
Industrial Area Phase – I
Chandigarh …Respondent.

Present:

For Appellant: Mr. Sandeep Bajaj, Ms. Aakanksha Nehra,
Mr. Siddhartha Shukla and Mr. Devansh Jain,
Advocates.

For Respondent: Mr. Savar Mahajan, Mr. Mohana Nijhawan and
Ms. Pooja Mahajan, Advocates.

WITH
Company Appeal (AT) No. 07 of 2020

IN THE MATTER OF:
Ashish Mohan Gupta,
Residing at
House No. 161, Sector 27-A
Chandigarh …Appellant.
 
Versus

1. M/s. Hind Motors Ltd.
Through its Liquidator Mr. Krishan Vind Jain
Having its registered office at:
9, Industrial Area, Phase – I,
Chandigarh – 160002
Also At:
SCO, 345-346, Second Floor,
Sector 35-B, Chandigarh
Email ID- ipjainkv@gmail.com

2. M/s. Hind Motors Mohali Pvt. Ltd.
Through its Liquidator Mr. Krishan Vind Jain
Having its registered office at:
B-16, Industrial Area, Phase – 2,
Mohali
Also at:
SCO, 345-346, Second Floor,
Sector 35-B, Chandigarh
Email ID- ipjainkv@gmail.com

3. M/s. Hind Motors India Limited’
Through its Liquidator Mr. Krishan Vind Jain
Having its registered office at:
9, Industrial Area, Phase – 1,
Chandigarh - 160002
Also at:
SCO, 345-346, Second Floor,
Sector 35-B, Chandigarh
Email ID- ipjainkv@gmail.com …Respondents

Present:
For Appellant: Mr. Sandeep Bajaj, Ms. Aakanksha Nehra,

Mr. Siddhartha Shukla and Mr. Devansh Jain,
Advocates.

For Respondent: Mr. Savar Mahajan, Mr. Mohana Nijhawan and
Ms. Pooja Mahajan, Advocates for R-1 to 3.

 ORDER
(Virtual Mode)
13.04.2021 Heard.

2. The Company Appeal (AT) (Ins.) No. 875 of 2019 relates to Liquidation Proceedings against Corporate Debtor M/s. Hind Motors India Limited. The Appellant is promoter and director of the said Company. It is stated that the Company was engaged in sale and service of cars and has certain immovable assets as well as plant and machinery and stock of spare parts of cars. The Order of Liquidation with regard to this Company was passed on 12th September, 2017. The Appellant claims that the Liquidator instead of reviving the Company through Settlement under Section 230 of the Companies Act, 2013 sought to close the business of the Company. The Liquidator issued Notice for sale of spare parts available with the Company at low price. E-Auction was proposed to be held on 16th August, 2019. The Appellant filed Application CA No. 620/2019 in CP No. 6/chd/CHD/2017 before the Adjudicating Authority (National Company Law Tribunal, Chandigarh Bench, Chandigarh) against said action and the Application came to be rejected by the Impugned Order dated 23rd August, 2019.

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