# In the matter of Bee Electronic Machines Limited CP (IB) 1152-MB-2017

> NCLT judgment dated 2022-08-12. Citation: TCN-2022-NCLT-01376. Mount Overseas Private Limited filed a petition under Sections 424 and 434 of the Companies…

- **Court:** NCLT
- **Order date:** 12 Aug 2022
- **Citation:** TCN-2022-NCLT-01376
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bee-electronic-machines-limited-cp-ib-1152-mb-2017-6fe8baa3

## Summary

### Background

Mount Overseas Private Limited filed a petition under Sections 424 and 434 of the Companies Act, 2013, seeking directions for Respondent No. 1 (Bee Electronics Machines Limited) to transfer the right, title, and interest in subject properties after executing the Conveyance Deed, handing over documents showing prior ownership, providing proof of settled liabilities, and handing over vacant possession. The petition also sought directions for Respondent No. 2 (Canara Bank) to execute sale deeds in favor of the Petitioner, as Respondent No. 2 had failed to do so and was in breach of previous orders. The case originates from Respondent No. 1 being declared a sick industrial company and Respondent No. 2 being appointed as the Operating Agency (OA) by the BIFR. The Petitioner

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## Facts

Mount Overseas Private Limited (the Petitioner) filed a petition seeking the transfer of properties it had bid for and won in a public auction conducted by Canara Bank (Respondent No. 2), acting as the Operating Agency (OA) for Bee Electronics Machines Limited (Respondent No. 1), a sick industrial company referred to the Board for Industrial and Financial Reconstruction (BIFR). In 2012, Respondent No. 1 had liabilities, leading the BIFR to permit the sale of properties. On 29.11.2012, Respondent No. 2 advertised the sale and received five bids. The Petitioner submitted the highest bid of Rs. 2.70 crores, including an earnest money cheque of Rs. 30 lakhs. By 26.03.2013, Respondent No. 2 accepted the Petitioner's bid, and the Petitioner paid Rs. 2.40 crores on

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction to entertain the petition under Sections 424 and 434 of the …

**Ratio:** The Tribunal can invoke the provisions of Rule 11 of the NCLT Rules, 2016, as the

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**Reasoning:** The Tribunal found that Respondent No. 2 failed to clarify the provision which debars the

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**Interpretation:** The NCLT interprets its inherent powers under Rule 11 of the NCLT Rules, 2016,

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**Application:** The NCLT applied its interpretation of its jurisdictional powers to the facts

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Mount Overseas…
- **Respondents:** Bee Electronics…

## Timeline

- **2006-02-28 — BIFR Ord…**: Respondent No. 1 declared as a…
- **2012-01-01 — Respondent No. 1…**: Respondent No. 1 had several liabilities…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 252 — Amendments of Act 1of 2004](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-252)

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