2020 (1) TMI 1648 - AT - Insolvency and Bankruptcy

Continuance of insurance of Corporate Debtor - CIRP initiated against Corporate Debtor - HELD THAT - Merely, because the Corporate Insolvency Resolution Process has been initiated against M/s. Kei-Rsos Maritime Limited- (Corporate Debtor) by an Agent or Insurer- Ship Owners Protection Limited, London (who has not moved any appeal) and as during the Corporate Insolvency Resolution Process, the Corporate Debtor is to continue as a going concern, the Adjudicating Authority (National Company Law Tribunal), Amaravati Bench, rightly passed the impugned order dated 27th November, 2019 directed the Insurer to continue with the Insurance. If any amount is payable during the Corporate Insolvency Resolution Process towards the instalment to the Insurer, the Interim Resolution Professional will take care of the same. Appeal dismissed.

Summary

Issues Involved:
1. Insurance coverage during Corporate Insolvency Resolution Process.

Analysis:
The judgment revolves around the issue of insurance coverage for a Corporate Debtor, M/s. Kei-Rsos Maritime Limited, during the Corporate Insolvency Resolution Process. The Appellant, an agent of Ship Owners Protection Limited, London (SOPL), an insurance company, had insured the Corporate Debtor involved in single point mooring operations with oil refineries. The Adjudicating Authority rightly ordered the Insurer to continue with the insurance coverage during the insolvency process, ensuring that any payable amounts to the Insurer would be managed by the Interim Resolution Professional. The judgment emphasizes the importance of maintaining insurance coverage for the Corporate Debtor to continue as a going concern during the insolvency proceedings, safeguarding the interests of all parties involved. The dismissal of the appeal signifies the affirmation of the Adjudicating Authority's decision, highlighting the lack of merit in challenging the continuation of insurance coverage. The judgment ultimately upholds the necessity of ensuring the protection and continuity of essential services and operations, such as those provided by the Corporate Debtor in this case, even amidst insolvency proceedings.