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TMI Blog2021 (8) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... Company and renewed the insurance by paying higher insurance premium. Section 20 (2)(b) of the IBC authorizes the IRP to enter into such contracts which were entered into before the commencement of CIRP. In this case there was a new contract of insurance after the commencement of CIRP. The Appellant was aware with this situation that he cannot take such decision, therefore, he has circulated the quotations amongst the Members of CoC alongwith comparison of their premium amount. Thus, the aforesaid provision does not authorize the IRP to renew the insurance policy without approval of CoC at higher premium rate. The Appellant without any approval appointed CS Jignesh Shah for the purpose of seeking legal opinion in the matter of related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts of this case are that one Operational Creditor M/s Oman Inc (HUF) filed an Application under Section 9 for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor M/s Digjam Ltd. Ld. Adjudicating Authority admitted the Application vide order dated 26.04.2019 and initiated CIRP and appointed Mr. Parag Sheth as IRP. Subsequently, IRP Mr. Parag Sheth has been replaced by the Resolution Professional (RP) Mr. Sunil Kumar Agarwal vide order dated 01.01.2020. Mr. Parag Sheth has handover the charge and documents to the RP between 03.01.2020 to 07.01.2020. 3. On 12.02.2020 the Applicant Mr. Parag Sheth received an email from the Company Secretary (CS) of the Corporate Debtor that the Committee of Creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grieved with this order the Appellant (Mr. Parag Sheth) has filed this Appeal. 7. Ld. Counsel for the Appellant submitted that upon the instructions of the CoC the Appellant called quotations from insurance companies on receipt of the quotation the same were circulated amongst the Members of CoC alongwith comparison of their premium amount. As the insurance of the assets of the Corporate Debtor was lapsing on 10.12.2019. Therefore, the Appellant as the IRP recognizing the urgent need to get the insurance renewed in order to safeguard the assets of the Corporate Debtor, decided to go with United India Insurance Company Ltd. The decision taken by the Appellant was in due discharge of his duties and was fair and for the benefit of the Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. After hearing Ld. Counsels for the parties, we have gone through the record. 11. It is admitted fact that the Appellant had performed his duty as IRP from 26.04.2019 to 01.01.2020 and the Appellant has got the fees and expenses as shown in Annexure A10 ₹ 11,06,081/- after deducting TDS by Cheque No. 22 dated 10.02.2020, in this amount excess premium paid by the Appellant i.e. ₹ 4,19,719/- has been deducted. 12. For appreciating the argument, it is useful to reproduced the grounds 9.2 (d, e, f, g) of memo of appeal, which are as under:- (d). The Appellant submits that the Members of the CoC decided to take insurance from IFFCO Tokio General Insurance Company Ltd. with premium amounting to ₹ 19,90,192/ as it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors. 13. With the aforesaid, it is apparent that without approval of the CoC the Appellant has taken decision to go with United India Insurance Company and renewed the insurance by paying higher insurance premium. 14. The Appellant submitted that he has statutory authority under Section 20(2) (b) of the IBC to take such decision. Hence, we have considered whether Section 20(2)(b) of the IBC authorizes the IRP to take such decision. Section 20(2)(b) reproduced as under: To enter into contracts on behalf of the Corporate Debtor or to amend or modify the contracts or transactions which were entered into before the commencement of Corporate Insolvency Resolution Process 15. We are of the view that Section 20 (2)(b) of the IBC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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