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2020 (11) TMI 676 - Tri - Insolvency and BankruptcyDirection to 2nd Respondent to release the machinery in possession with the 1st Respondent/Corporate Debtor and transfer the possession of the same to the Applicant - HELD THAT - In the statement, in regard to payment for the security arrangements of the Corporate Debtor it is stated that even though three securities have been arranged to guard the Corporate Debtor premises to keep the machineries, the Resolution Professional has limited it into two securities charges and claimed the six months charges of ₹ 1,90,080. Since the applicant undertake to make payment of ₹ 75,000/- in addition to ₹ 38,414/- already paid by them, the Resolution Professional should accept that amount, as the Corporate Debtor property is still under the possession of the Resolution Professional, the Resolution Professional has also to bear a part of the payment, without shouldering the full responsibility on the applicant as the CIR Process is not yet completed. Regarding the other payments, since the applicant has agreed to bear the CGST payment provided the Bristo Foods Pvt.Ltd. cooperate in signing the documents and that they are ready to pay the upfront amount of ₹ 2,95,400/- provide the Bristo Foods Pvt.Ltd allow them to lift the machineries, there will not be any further dispute in those matters. They have also undertook to remove the machineries without causing any damage to the property of the Corporate Debtor. The applicant shall pay the CGST liability of ₹ 19,40,892/- demanded by the CGST Department and the Corporate Debtor Bristo Foods Pvt.Limited or Resolution Professional, as the case may be, sign the communications to be submitted to the Department, as the registration number is with the Bristo Foods Private Limited - applicant shall pay the upfront amount of ₹ 2,95,400/- towards the outstanding dues to the Bristo Foods Pvt.Limited. Application disposed off.
Issues Involved:
1. Release and transfer of machinery from the Corporate Debtor to the Applicant. 2. Settlement of outstanding dues and liabilities, including CGST liability. 3. Conditions for removal of machinery, including payment of security charges and prevention of damage to the factory premises. Detailed Analysis: 1. Release and Transfer of Machinery: The applicant, a sub-contractor of the Corporate Debtor, sought the release and transfer of machinery leased to the Corporate Debtor. The Tribunal acknowledged the commencement of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and the appointment of an Interim Resolution Professional (IRP), later replaced by a Resolution Professional (RP). The applicant had provided machinery under a lease agreement and sought its return post-termination of the sub-contracting and lease agreements. The RP stated that machinery removal required inspection and settlement of accounts. 2. Settlement of Outstanding Dues and Liabilities: The RP outlined conditions for machinery removal, including: - Payment of ?2,95,400/- towards manufacturing charges. - Payment of ?1,90,080/- for six months of security charges. - Reimbursement or repair of any damages caused during machinery removal. - Settlement of CGST liability of ?19,40,982/- due to irregularities in CENVAT Credit utilization. The applicant agreed to these conditions, undertaking to pay the outstanding dues and provide necessary support for resolving the CGST issue. 3. Conditions for Removal of Machinery: The Tribunal ordered the following conditions for machinery removal: - Payment of CGST liability of ?19,40,892/-. - Upfront payment of ?2,95,400/- towards outstanding dues. - Payment of ?75,000/- for security charges. - Ensuring no damage to the factory premises, with any damages to be repaired by the applicant. Upon compliance with these conditions, the RP was directed to hand over the machinery to the applicant. Conclusion: The Tribunal disposed of the application, directing the applicant to fulfill the specified conditions for the release and transfer of machinery from the Corporate Debtor's premises. The order emphasized the settlement of dues, security charges, and prevention of damage to the property during machinery removal.
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