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2022 (6) TMI 678 - Tri - Insolvency and BankruptcySeeking recovery of the dues of the Corporate Debtor from the respondents - dues pertain to the period prior to the initiation of CIR process of the Corporate Debtor - Section 60(5) of IBC, 2016 read with Rule 11 of the NCLT Rules, 2016 - adjudicating authority, appropriate forum for recovery of dues or not - HELD THAT - If any dues have to be claimed by the Corporate Debtor through its RP or Liquidator, the same can only be claimed under Section 43, 45, 66 of IBC, 2016 - since there is no averment made in the application that the transaction mentioned in the application are either preferential, undervalued or fraudulent, the question of exercising our jurisdiction does not arise. The Liquidator is eligible to file Civil Suit by taking due permission of this Adjudicating Authority in terms of Section 33(5) of IBC, 2016. From the conjoint reading of Section 63 of IBC, 2016 and proviso under Section 33(5) of IBC, 2016, it can be inferred that if a Liquidator is eligible or required to institute a suit or other legal proceeding on behalf of the corporate debtor, it can do so with prior approval of this Adjudicating Authority - further, the Adjudicating Authority is not a substitute to a Court of recovery therefore, this is not the appropriate forum to adjudicate such transactions. Application dismissed as being not maintainable.
Issues:
1. Recovery of dues of the Corporate Debtor from respondents prior to the initiation of CIR process. 2. Jurisdiction of National Company Law Tribunal (NCLT) under IBC, 2016. 3. Eligibility of the Liquidator to file a Civil Suit. 4. Interpretation of Section 63 and Section 33(5) of IBC, 2016. 5. Forum for adjudicating transactions related to corporate debtors. Analysis: 1. The case involved an application filed by the Liquidator seeking recovery of dues of the Corporate Debtor from several respondents. The dues were related to a period before the initiation of the Corporate Insolvency Resolution (CIR) process against the Corporate Debtor. 2. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016. The Tribunal observed that any dues to be claimed by the Corporate Debtor should be done under specific sections of the IBC, such as Section 43, 45, and 66, if they are not preferential, undervalued, or fraudulent transactions. 3. The Tribunal highlighted that the Liquidator could file a Civil Suit with the permission of the Adjudicating Authority as per Section 33(5) of the IBC, 2016. However, the Liquidator argued that Section 63 of the IBC bars the jurisdiction of Civil Courts, which was acknowledged by the Tribunal. 4. The Tribunal analyzed Section 63 and Section 33(5) of the IBC, 2016. It concluded that the Liquidator could institute legal proceedings on behalf of the Corporate Debtor with the prior approval of the Adjudicating Authority. The Tribunal emphasized that it was not a substitute for a Court of recovery and deemed that it was not the appropriate forum to adjudicate such transactions. 5. Consequently, the Tribunal dismissed the application as not maintainable. However, it granted permission to the Liquidator, in accordance with the proviso to Section 33(5) of the IBC, to seek the appropriate remedy in the appropriate court as per the law. The decision was based on the interpretation of relevant sections of the IBC and the Tribunal's role in adjudicating transactions related to corporate debtors.
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