2022 (6) TMI 1044 - Tri - Insolvency and Bankruptcy

Refund of amount towards the I.R.P to meet out the initial expenses - non-speaking order - Section 53(1) (a) of the Insolvency and Bankruptcy code, 2016 - seeking modification in the list of stakeholders and to include the unpaid CIRP cost in the stakeholders list of Goodwin Packpet Private Limited - HELD THAT - A reading of the receipt dated 12/01/2022 issued by the Former IRP Shri. Satiq Buhari, makes it clear that the Operational Creditor Shri. Amrjeeth Singh, Proprietor of Vinneeth Enterprises has deposited an amount of Rs. 2,00,000/- with the IRP to meet the initial expenses of CIRP and it was resolved in the 1st CoC meeting convened on 18/11/2020 to refund the said amount to the Appellant. The contention raised by the 2nd respondent that he has not received the receipt of voucher from the Former IRP Shri. Satiq Buhari is not a ground to reject the request of the Appellant to return the amount of Rs. 2,00,000/- paid by him being the initial expenses of CIRP. There is considerable delay on the part of the former IRP Shri. Satiq Buhari to communicate the relevant papers to the Liquidator. However, the amount of Rs. 2,00,000/- is to be paid back to the Operational Creditor by the Liquidator, as the said amount is rightfully payable to him when the CIRP proceeds are finalized. The former IRP who appeared through VC stated that there is a delay on his part to reply the communication of the Liquidation and that the same may be excused. The 2nd respondent Liquidator stated that he is ready to accept the claim of Rs. 2,00,000/- if this Tribunal gives a direction to that affect. Since we find that the amount of Rs. 2,00,000/- is legally entitled to the Operational Creditor Shri. Amrjeeth Singh, we allow this Application and direct the 2nd respondent to refund the amount of Rs. 2,00,000/- to Shri. Amrjeeth Singh, the Operational Creditor/Appellant towards the initial expenses of CIRP during the time of distribution of assets from the proceeds from the sale of liquidation assets, with due priority as mandated under Section 53(1)(a) of the Insolvency and Bankruptcy Code, 2016. The 2nd respondent is also directed to modify the list of Stakeholders and to include the unpaid CIRP costs of Rs. 2,00,000/- in the stakeholders list of Goodwin Packpet Private Limited. Application disposed off.

Issues:
1. Refund of initial expenses paid by Operational Creditor to IRP.
2. Rejection of claim by Liquidator.
3. Inclusion of CIRP costs in stakeholders list.
4. Delay in communication and documentation submission.
5. Legal entitlement of Operational Creditor to refund.

Analysis:
1. The Operational Creditor filed under Section 42 of the Insolvency and Bankruptcy Code seeking refund of Rs. 2,00,000 paid towards initial expenses. The CoC approved expenses but set off a portion towards IRP fees.
2. Liquidation order appointed a new Liquidator who did not consider the Operational Creditor's initial expenses. Liquidator's rejection was challenged in a previous appeal.
3. Operational Creditor sought inclusion of expenses in stakeholders list. Liquidator's rejection led to the current challenge.
4. Former IRP delayed providing documentation, causing issues in verifying expenses. Liquidator faced delays in modifying stakeholders list.
5. Tribunal analyzed a receipt confirming the Operational Creditor's payment and CoC's decision to refund. Former IRP and Liquidator admitted the payment. Tribunal directed refund as legally entitled under Section 53(1)(a).

Conclusion:
The Tribunal allowed the Operational Creditor's application, directing the Liquidator to refund Rs. 2,00,000 towards initial expenses of CIRP. The Liquidator was instructed to modify the stakeholders list accordingly. The order set aside the previous rejection by the Liquidator, emphasizing the Operational Creditor's legal entitlement to the refund.

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