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2023 (10) TMI 356 - AT - Insolvency and BankruptcyJurisdiction of Adjudicating Authority to pass an order in regard to payment of pre-CIRP dues during the CIRP - HELD THAT - Though the issue raised by the Appellant may be attractive but in the present case, no such issue survives after the order dated 15.05.2023 is passed, therefore, the same is dismissed.
Issues involved:
The issues involved in the judgment are the jurisdiction of the Adjudicating Authority to pass orders regarding payment of pre-CIRP dues during the CIRP and the status of the CIRP proceedings after a subsequent order closed the proceedings. Jurisdiction of Adjudicating Authority: The appeal was directed against an order passed by the Adjudicating Authority under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (Code) r/w Regulation 33 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The order permitted the Insolvency Resolution Professional (IRP) to release dues to keep the corporate debtor operational and seek assistance under Section 19 of the Code from personnel associated with the management of the company. The Appellant contended that the Adjudicating Authority had no jurisdiction to issue such orders regarding pre-CIRP dues during the Corporate Insolvency Resolution Process (CIRP). Status of CIRP Proceedings: During the pendency of the appeal, the IRP of the Corporate Debtor filed an application seeking permission to make payments related to pre- and post-Insolvency Commencement Date dues. The application was decided on 29.03.2023 and was challenged by a Financial Creditor. The Respondents argued that the appeal became infructuous after a subsequent order on 15.05.2023 closed the CIRP proceedings initiated on 10.02.2023. They contended that with the closure of the CIRP proceedings, the company's control reverted to itself and not the IRP. The Tribunal dismissed the appeal, stating that no issue survived after the closure of the CIRP proceedings on 15.05.2023, and hence, the appeal was dismissed with no costs.
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