2022 (3) TMI 757 - AT - Insolvency and Bankruptcy

Levy of pendente lite and future interest and Penal Interest over the documented rate in respect of its Credit Facility together with interest, further interest, Liquidated Damages and other charges thereon at the contractual rates - imposing conditions for the permission to sale of Agricultural Land - hand over of physical possession of the Agricultural Land - permission to Applicant being the secured creditor, to sell/realize the Mortgaged Property - Regulations 2(ea), 2A, 21A, 37 of the Liquidation Regulations and Section 52/53 of the Code - HELD THAT - In so far as the claim of the Appellant is concerned of ₹ 29,34,54,879.59/- it has been admitted by the Liquidator the said claim is the claim admitted in the Liquidation Process and no further adjudication was called for with regard to the said claim - In the present case, the admission of the claim is not sought to be challenged by State Bank of India. In so far as the payment of Liquidator s Fee, Adjudicating Authority has disposed of the application with the direction to make payment of Liquidator s Fee and ensure compliance of Regulations 2(ea), 2A, 21A, 37 of the Liquidation Regulations and Section 52/53 of the Code. The order passed by the Adjudicating Authority does not warrant any interference - Appeal dismissed.

Summary

Issues:
1. Appeal against the Order dated 30th November, 2021 passed by the Adjudicating Authority in Application I.A. No. 1456/ND/2021.

Analysis:
The appeal in question was filed against an order passed by the Adjudicating Authority regarding various prayers made by the State Bank of India in their application. The prayers included adjudicating the claim amount payable by the Corporate Debtor, setting aside certain communications of the Liquidator, directing the handover of physical possession of certain Agricultural Land, permitting the secured creditor to sell the mortgaged property, and seeking any other orders deemed fit by the Court. The Adjudicating Authority referred to relevant Liquidation Regulations and sections of the Code before passing an order directing compliance with the regulations and the provisions of the law.

The Appellant raised concerns regarding the adjudication of the claim amount and the liability to pay fees for securities out of the Liquidation Process. On the other hand, the Liquidator contended that the claim had already been admitted, and fees were still applicable even for securities outside the Liquidation Process. The Tribunal considered the arguments presented by both parties and examined the record. It was noted that the claim amount had been admitted by the Liquidator during the Liquidation Process, and there was no challenge to this admission by the State Bank of India. The Tribunal upheld the Adjudicating Authority's decision, emphasizing the need for compliance with the Liquidation Regulations and the payment of the Liquidator's fee as directed in the order.

Ultimately, the Tribunal found no error in the direction given by the Adjudicating Authority and dismissed the appeal. The Appellant was instructed to comply with the relevant regulations as specified in the judgment. The decision highlighted the importance of adhering to the regulations and fulfilling the obligations outlined in the order issued by the Adjudicating Authority.