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TMI Blog2019 (8) TMI 1720X X X X Extracts X X X X X X X X Extracts X X X X ..... yable to the Union of India or not, during the Corporate Insolvency Resolution Process . The Adjudicating Authority rightly held that it was concern about the enforcement of the provision of Section 14 of the I B Code as per which after declaration of Moratorium prohibition is enforced from recovery of any amount from the Corporate Debtor. Prohibition is also towards institution of any suit or execution of any judgment, decree or order of any court of law, Tribunal, Arbitration Panel etc. once the order of Moratorium is passed. However, it is open to the Corporate Debtor to recover any amount as per law and award, if any, passed in its favour - The Adjudicating Authority rightly held that the Ministry of Petroleum can lodge its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... locate 100% of the Sale Proceeds/Oil and Gas Invoices in favour of Government, with immediate effect for recovering the provisional sum of US $ 314 million together with applicable interest towards the unpaid Government share of Profit Petroleum. You are also advised to remit the above assigned amount to Pay and Accounts Officer (PAO), Ministry of Petroleum and Natural Gas (MoPNG) under intimation to this office. 2. Against the aforesaid Demand Notice, the Resolution Professional filed a Miscellaneous Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the I B Code ) before the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai on the ground that durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and the following four parties on 28th October, 1994, having percentage of participating interest as follows: S. No. Name of Party % Participating Interest 1 ONGC Ltd. ( ONGC ) 40% 2. Videocon Industries Limited (Corporate Debtor) 25% 3. Vedanta Ltd. ( VIL ) (company in which Cairn India Ltd. Stands merged) 22.5% 4. Ravva Oil (Singapore) Pte. Ltd. ( ROS ) 12.5% 5. The dispute arose between Government of India and Videocon Industries Limited (Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that Union of India is the sole owner of the entire petroleum from the Contract Area. It was further submitted that as per Articles 15.8 and 16.4 of the Production Sharing Contract , the allocation of petroleum towards cost petroleum and profit petroleum requires the approval of the Management Committee and the Central Government. It was alleged that the Corporate Debtor through Resolution Professional is trying to defeat the terms of the Production Sharing Contract by falsely claiming that the profit petroleum do not fall in the share of the Union of India. 10. According to the learned counsel for the Union of India the Demand Notice dated 22nd October, 2018 does not come within the ambit of recovery from the Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to the approved work programme. Clause 7.2 of the Production Sharing Contract provides that the operating function required of the contractor under this contract has to be performed by the operator on behalf of all the parties comprising contractor subject to, and in accordance with, the terms and provisions of the contract and generally accepted international petroleum industry practice. 13. According to Resolution Professional all joint petroleum operations are conducted by operator (Vedanta Limited) in accordance with policies, work programme and budgets approved by all the constituents of the contractor unanimously in accordance with the provisions of the contract and agreement between the contractors. As per agreement betwe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d October, 2018 was issued by Union of India, Ministry of Petroleum Natural Gas (Exploration Division), Shastri Bhavan, New Delhi. 16. It is true that the aforesaid demand notice has no relevancy with the award and the Resolution Professional cannot rely on the award for the purpose of deciding whether it is payable to the Union of India or not, during the Corporate Insolvency Resolution Process . 17. The Adjudicating Authority rightly held that it was concern about the enforcement of the provision of Section 14 of the I B Code as per which after declaration of Moratorium prohibition is enforced from recovery of any amount from the Corporate Debtor. Prohibition is also towards institution of any suit or execution of any judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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