The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ('IB Code') by IMEC Services Limited (Applicant) seeking directions and declarations related to a Slump Sale Agreement dated 30th March 2011 between the Applicant and RSAL Steel Private Ltd. (Corporate Debtor). The Applicant sought to transfer responsibilities for export obligations under Advance Licenses to the Corporate Debtor, particularly concerning a Show Cause Notice dated 01st December 2021 issued by the Assistant Commissioner of Customs. The Applicant contended that the Corporate Debtor should comply with demands from Customs Authorities arising out of Advance Licenses and ensure reflection of amounts owed to Customs Authorities in the Resolution Plan.
IMEC Services Limited (Applicant), a public limited company, entered into a Slump Sale Agreement with RSAL Steel Private Ltd. (Corporate Debtor), its subsidiary, on March 30, 2011, transferring its steel division for Rs. 47,51,00,000/-. Prior to the agreement, the Applicant held Advance Licenses allowing duty-free imports, contingent on export obligations. After a decade, the Applicant received a Show Cause Notice dated December 1, 2021, from Customs regarding unfulfilled export obligations. The Applicant argued that these obligations transferred to the Corporate Debtor under the Slump Sale Agreement. The Resolution Professional (RP) for the Corporate Debtor contested this, stating the licenses were non-transferable and the Applicant remained liable. The RP also noted
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IMEC Services Limited…
Advance License bearing…
The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ('IB Code') by IMEC Services Limited (Applicant) seeking directions and declarations related to a Slump Sale Agreement dated 30th March 2011 between the Applicant and RSAL Steel Private Ltd. (Corporate Debtor). The Applicant sought to transfer responsibilities for export obligations under Advance Licenses to the Corporate Debtor, particularly concerning a Show Cause Notice dated 01st December 2021 issued by the Assistant Commissioner of Customs. The Applicant contended that the Corporate Debtor should comply with demands from Customs Authorities arising out of Advance Licenses and ensure reflection of amounts owed to Customs Authorities in the Resolution Plan.
IMEC Services Limited (Applicant), a public limited company, entered into a Slump Sale Agreement with RSAL Steel Private Ltd. (Corporate Debtor), its subsidiary, on March 30, 2011, transferring its steel division for Rs. 47,51,00,000/-. Prior to the agreement, the Applicant held Advance Licenses allowing duty-free imports, contingent on export obligations. After a decade, the Applicant received a Show Cause Notice dated December 1, 2021, from Customs regarding unfulfilled export obligations. The Applicant argued that these obligations transferred to the Corporate Debtor under the Slump Sale Agreement. The Resolution Professional (RP) for the Corporate Debtor contested this, stating the licenses were non-transferable and the Applicant remained liable. The RP also noted
…IMEC Services Limited…
Advance License bearing…