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TMI Blog2019 (11) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... gned Interim Orders dated 14.08.2019 and 05.09.2019 passed by the Odisha High Court is set aside, as parallel proceedings with respect to the main issue cannot take place in the High Court. The sale or liquidation of the assets of Respondent No. 4 will now be governed by the provisions of the IBC. - CIVIL APPEAL NOS. 8800-8801 OF 2019 (Arising out of SLP (Civil) Nos. 23349-23350 of 2019) - - - Dated:- 18-11-2019 - INDU MALHOTRA And R. SUBHASH REDDY, JJ. For the Appellant : Mr. Bijoy Kumar Jain, AOR For the Respondent : Mr. C.U. Singh, Sr. Adv. Mr. Ashish Prasad, Adv. Ms. Mukta Dutta, Adv. Mr. Rajesh J., Adv. Mr. Rohit Sharma, Adv. Mr. Mahfooz Ahsan Nazki, AOR Mr. Vikram Banerjee, ASG Mr. R.R. Rajesh, Adv. Mr. Rajesh K. Singh, Adv. Mr. Anshul Gupta, Adv. Mr. Raj Bahadur Yadav, AOR Mr. Shibashish Misra, AOR Ms. Archana Pathak Dave, AOR Mr. Sandeep Pathak, Adv. Ms. Deepsha Talwar, Adv. JUDGMENT INDU MALHOTRA, J. Leave granted. 1. The present Civil Appeals have been filed by the Appellant Resolution Professional appointed by the National Company Law Tribunal for the Corporate Debtor M/s Hirakud Industrial Work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was further directed that if Respondent Nos. 1 to 3 fail to make the payment of compensation to the workmen, the assets of Respondent No. 4 would be sold through public auction, and the proceeds would be used for disbursement of the arrears of the workmen. 4.6 The Labour Court, Sambalpur vide Order dated 11.11.2016 quantified the amount payable to the workmen as ₹ 45,66,67,133/. 4.7 The High Court vide Order dated 12.01.2017 directed the Deputy Labour Commissioner, Sambalpur Division to sell a parcel of Respondent No. 4 s land admeasuring 157.27 acres to the Hirakud Dam Project. Upon receipt of the sale proceeds of ₹ 10,04,12,105/from the Government of Orissa, this amount was disbursed towards the arrears of the workmen s dues. 4.8 During the pendency of proceedings before the High Court in W.P. (Civil) No. 7939/2011, M/s Nandakini Contractors Pvt. Ltd a Financial Creditor filed a Petition under Section 7 of the IBC, 2016 bearing CP (IB) No. 01/CTB/2019, before the National Company Law Tribunal, Cuttack Bench ( NCLT ) for initiation of the Corporate Insolvency Resolution Process ( CIRP ) against the Corporate Debtor Respondent No. 4, si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he National Company Law Tribunal ( NCLT ) shall declare a moratorium for the purposes referred to in Section 14 of the IBC. Section 14 provides that on the insolvency commencement date, the Adjudicating Authority shall by order, declare a moratorium prohibiting the institution of suits, or continuation of pending suits or proceedings against the corporate debtor, including execution of any judgment, decree, or order in any court of law, tribunal, arbitration panel, or any other authority. Section 14 reads as follows : 14. Moratorium. (1) Subject to provisions of subsections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely: (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing off by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter in which the Adjudicating Authority or the Board is empowered by, or under, this Code to pass any order and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any order passed by such Adjudicating Authority or the Board under this Code. 9. In view of the provisions of the IBC, the High Court ought not to have proceeded with the auction of the property of the Corporate Debtor Respondent No. 4 herein, once the proceedings under the IBC had commenced, and an Order declaring moratorium was passed by the NCLT. The High Court passed the impugned Interim Orders dated 14.08.2019 and 05.09.2019 after the CIRP had commenced in this case. The moratorium having been declared by the NCLT on 04.06.2019, the High Court was not justified in passing the Orders dated 14.08.2019 and 05.09.2019 for carrying out auction of the assets of the Respondent No. 4 Company i.e. the Corporate Debtor before the NCLT. The subject matter of the auction proceedings before the High Court is a vast chunk of land admeasuring about 330 acres, including Railway lines and buildings. If the assets of the Respondent No. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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