2018 (11) TMI 1634 - AT - Insolvency and Bankruptcy

Sequel to admission of petition, moratorium has been slapped in terms of Section 14 of the I B - HELD THAT - Since the Adjudicating Authority has passed the interim direction on the basis of a prima facie view which is directed to last only till 26.11.2018 and MA No. 1300/2018 has not been decided on merit, it would be appropriate to dispose of the instant appeal by requesting the Adjudicating Authority to expedite the disposal of aforesaid MA after taking reply from the Appellant. The Adjudicating Authority will permit the Appellant to submit its reply on 26.11.2018. It would be appropriate to direct that the oil companies (R-2 to 5) shall not release amounts under profit petroleum which comprises subject matter of notice, till disposal of MA No. 1300/2018.

Summary

Issues:
1. Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016.
2. Maintenance of status quo till next hearing date.
3. Disposal of MA No.1300/2018.
4. Direction regarding release of amounts under profit petroleum.
5. Request for expediting the disposal of MA.
6. Clarification on the authority of the Adjudicating Authority.
7. Copy of the order provision.

Issue 1: Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016
The judgment states that a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted by the State Bank of India against 'Videocon Industries Ltd.', leading to the imposition of a moratorium in accordance with Section 14 of the I&B Code. The Corporate Debtor is undergoing Corporate Insolvency Resolution Process.

Issue 2: Maintenance of status quo till next hearing date
The Adjudicating Authority directed the maintenance of status quo until the next hearing scheduled for 26.11.2018. The parties involved have agreed to a disposal schedule for MA No.1300/2018, with the Appellant yet to file a reply.

Issue 3: Disposal of MA No.1300/2018
The judgment emphasizes the need for expeditious disposal of MA No.1300/2018, as the interim direction was based on a prima facie view and not a final decision. The Adjudicating Authority is requested to expedite the disposal after receiving the Appellant's reply.

Issue 4: Direction regarding release of amounts under profit petroleum
To protect the interests of both parties, the judgment directs that oil companies (R-2 to 5) should not release amounts under profit petroleum, which is the subject matter of notice, until the disposal of MA No.1300/2018.

Issue 5: Request for expediting the disposal of MA
In the interest of justice, the judgment urges the Adjudicating Authority to promptly consider and decide on MA No.1300/2018 based on its merits, without being influenced by previous observations.

Issue 6: Clarification on the authority of the Adjudicating Authority
The judgment clarifies that the order should not restrict the Adjudicating Authority's power to issue appropriate directions regarding profit petroleum after a full hearing on the matter.

Issue 7: Copy of the order provision
A copy of the order is directed to be provided dasti to the Appellant, and the appeal is considered disposed of.

This detailed analysis covers the key issues addressed in the judgment by the National Company Law Appellate Tribunal, New Delhi, in the case at hand.