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TMI Blog2019 (3) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... an be decided only by the ‘CCI’. Pursuant to the ‘Resolution Plan’ as the ‘Liberty House Group’ will acquire ‘Adhunik Metalliks Ltd.’ – (‘Corporate Debtor’) being ‘Successful Resolution Applicant’ is required to intimate the ‘CCI’ in terms of Section 6(2) of the Competition Act, 2002. Therefore, the submission made on behalf of the ‘Liberty House Group’ that the ‘effective date’ of plan is date of approval by ‘CCI’ cannot be accepted. The prayer is rejected. Case of ‘MSTC Limited’ - ‘Resolution Professional’ disputed the claim and taken plea that ‘MSTC Limited’ is a facilitator and not a vendor or owner of raw materials, ‘MSTC Limited’ procure such materials from different vendors and supplies to the buyers - According to Appellant – ‘MSTC Limited’, whatever payment made by the ‘Resolution Professional’ has been appropriated towards the old dues - HELD THAT:- Adjudicating Authority rightly held that Section 14 of the ‘I&B Code’ will override any other provisions contrary to the same. Any amount due to the ‘Operational Creditor’ prior to the date of ‘Corporate Insolvency Resolution Process’ (Admission) cannot be appropriated during the moratorium period. In view of the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roup also moved an application seeking directions to implement the Resolution Plan by the Long Stop Debt as defined in the Resolution Plan . The Liberty House Group also requested to issue ad interim directions to the Committee of Creditors not to pursue the application for liquidation. 4. The Adjudicating Authority having heard the parties by impugned order dated 12th December, 2018 refused to grant interim relief to the Liberty House Group and asked as to why order of liquidation in terms of sub-section (3) of Section 33 of the I B Code be not passed. 5. The typographical error was corrected by impugned order dated 3rd January, 2019, allowing the Liberty House Group to file reply affidavit. 6. The order dated 12th December, 2018 rejecting the prayer of Liberty House Group to grant interim relief read with order dated 3rd January, 2019 allowing the Liberty House Group to file reply affidavit have been challenged by Liberty Group House . Case of Liberty Group House 7. Learned counsel appearing on behalf of the Liberty House Group submitted that the Resolution Plan not only contemplated corresponding obligations of the parties who wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... knowledge of assessing requirement of CCI s approval, which is dependent on financial position of the previous year. The Appellant was under the bona fide assumption that CCI s approval would be required for its Resolution Plan , as a deminimus exemption was not available. The Appellant had anticipated that the CCI approval would be received within a month-and-a-half of the approval of the Resolution Plan and, therefore, the Appellant indicated 57 days timeline to commence which should be from the date of CCI s approval, and not from the date of approval of the Resolution Plan . 13. It is accepted that the assessment of CCI approval with regard to the Corporate Debtor was finalized on 4th September, 2018 at the time of pre-filing consultation with regard to the other entity namely- Amtek Auto Limited on 4th September, 2018, the CCI has inquired about the status of Corporate Debtor . Thereafter, the Appellant kept receiving correspondences from the CCI till as late as 10th December, 2018 seeking clarifications regarding the Corporate Debtor . 14. It was submitted that the Resolution Plan contemplated various regulatory approvals and consultation wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C Limited is a facilitator and not a vendor or owner of raw materials, MSTC Limited procure such materials from different vendors and supplies to the buyers. In the present case, MSTC Limited made available iron ore, coke etc., which are the key inputs in the production process of steel industry ( Corporate Debtor ). As per facility arrangement, the Appellant MSTC Limited pays the vendor directly against the supply of raw material to the Corporate Debtor . So when every raw material is lifted from the possession of the MSTC Limited , the Corporate Debtor is required to pay the amount only in respect of the materials lifted from the possession of the MSTC Limited . 20. It was submitted that MSTC Limited as Operational Creditor had submitted its claim for an amount of ₹ 172.15 Crores along with proof of claim on 9th January, 2018. The Resolution Professional collated the claim and admitted a sum of ₹ 165.09 Crores payable as on the Insolvency Commencement Date . The Corporate Debtor was availing raw material procurement facility from MSTC Limited from abroad. 21. Further, according to the Resolution Professional a sum of ₹ 165.09 Cro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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