# In the matter of LEO Duct Engineers & Consultants Limited

> NCLT judgment dated 2023-10-11. Citation: TCN-2023-NCLT-01298. The application IA 2388/2022 was filed by the Applicant/Liquidator, Mr. Pramod Dattaram Rasam,…

- **Court:** NCLT
- **Order date:** 11 Oct 2023
- **Citation:** TCN-2023-NCLT-01298
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/leo-duct-engineers-consultants-limited-74d5c443

## Summary

### Background

The application IA 2388/2022 was filed by the Applicant/Liquidator, Mr. Pramod Dattaram Rasam, concerning M/s Leoduct Engineers and Consultants Limited, the Corporate Debtor, under Section 35(1)(m) and (n) of the Insolvency and Bankruptcy Code, 2016, read with Regulations 37A and 38 of the IBBI (Liquidation Process) Regulations, 2016. The application sought distribution and assignment of Not Readily Recoverable Assets (NRRA) of the Corporate Debtor to enable the Liquidator to complete the liquidation process. Liquidation against the Corporate Debtor commenced on July 9, 2019, and the Applicant was appointed as the Liquidator. The Liquidator made a public announcement inviting claims from stakeholders and submitted preliminary reports and asset memorandums to the

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## Facts

The Corporate Debtor, M/s Leoduct Engineers and Consultants Limited, is undergoing liquidation. The liquidation process commenced on July 9, 2019, with Mr. Pramod Dattaram Rasam appointed as the Liquidator. The Liquidator has sold most of the Corporate Debtor's assets but is left with certain Not Readily Recoverable Assets (NRRA). The Liquidator seeks permission to distribute these NRRA assets to Canara Bank, a stakeholder, under Regulation 38 of the IBBI (Liquidation Process) Regulations, 2016. The pending claim of Canara Bank is Rs. 74,76,63,178, which exceeds the value of the NRRA assets. The NRRA assets include plant and machinery, vehicle, recovery from Gail Gas Limited, recovery from Vodafone Essar South Limited, transactions referred to in sections 43 to 51 and

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## Issues and analysis

### Issue 1: Whether the Liquidator should be permitted to distribute the Not Readily Recoverable Assets (NRRA) …

**Ratio:** Regulation 38 of the IBBI (Liquidation Process) Regulations, 2016, allows the liquidator,

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**Reasoning:** The Bench found that the Applicant had provided the details of the assets to be

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**Interpretation:** Regulation 38 provides a mechanism for the distribution of unsold assets to

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**Application:** The court applied Regulation 38 to the facts of the case, noting that the

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Pramod Dattaram…
- **Respondents:** Leoduct Engineers…; Canara…

## Timeline

- **2017-01-01 — CP(IB) No. 110…**: The matter was registered as…
- **2019-07-09 — Liquidation Com…**: Liquidation against the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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