# In the matter of FLPL Logistics Pvt. Ltd. IA-4939-2022 in Company Petition No. IB-2976(ND)-2019

> NCLT judgment dated 2023-02-16. Citation: TCN-2023-NCLT-04571. Kotak Mahindra Prime Limited filed an application seeking a direction to the…

- **Court:** NCLT
- **Order date:** 16 Feb 2023
- **Citation:** TCN-2023-NCLT-04571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/flpl-logistics-pvt-ltd-ia-4939-2022-in-company-petition-no-ib-2976nd-2019-9ffe701f

## Summary

### Background

Kotak Mahindra Prime Limited filed an application seeking a direction to the Liquidator/Respondent to remit Rs. 39,35,000, realized from the sale of the security interest (Audi A8). Kotak Mahindra Prime Limited is an assignee of M/s. Volkswagen Finance Private Limited and claims to be a secured Financial Creditor. The Liquidator remitted only Rs. 8954, leading to the application. The Liquidator had previously filed an application (IA-3278/2021) seeking directions against Volkswagen Finance Private Limited for relinquishment of security interest due to non-compliance with Regulation 21A(2) of IBBI (Liquidation Process) Regulations, 2016. The Tribunal had directed Volkswagen Finance Private Limited to handover the asset to the Liquidator.

## Facts

Kotak Mahindra Prime Limited (Applicant) sought remittance of Rs. 39,35,000 from the Liquidator/Respondent, which was realized from the sale of an Audi A8 (security interest). Kotak Mahindra Prime Limited is an assignee of Volkswagen Finance Private Limited. The Liquidator only remitted Rs. 8954. Volkswagen Finance Private Limited had failed to comply with Regulation 21A(2) of IBBI (Liquidation Process) Regulations, 2016, leading to a Tribunal order directing them to handover the asset to the Liquidator. The Corporate Debtor, FLPL Logistics Private Limited, was dissolved, and the Liquidator was discharged. The Liquidator sold the asset and distributed the proceeds to stakeholders. The key fact is that the corporate debtor was dissolved and the liquidator discharged,

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## Issues and analysis

### Issue 1: Whether the application filed by Kotak Mahindra Prime Limited is maintainable given the dissolution …

**Ratio:** An application is not maintainable if the Corporate Debtor has been dissolved and the

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**Reasoning:** The Tribunal reasoned that since the Corporate Debtor had been dissolved and the

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**Interpretation:** This interprets the legal principle that once a corporate entity is dissolved

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**Application:** The Tribunal applied this principle to the facts of the case, noting that FLPL

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** Nuvision (Delhi)…
- **Respondents:** FLPL Logistics…; Rishabh Chand…

## Timeline

- **2021-10-21 — Tribunal…**: Tribunal passed an order regarding…
- **2021-12-21 — Tribunal Order in…**: Tribunal directed M/s. Volkswagen Finance Private Limited to handover the possession of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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