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TMI Blog2021 (9) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... the corporate debtor, which reason we find it quite bizarre and we are unable to comprehend. The first respondent is ready to receive the proceeds of the resolution plan, into its bank account, however for the purpose of the paying the CIRP costs they are raising a feeble defence that they have to get the approval of the RBI - The Regulations framed by the IBBI and the provisions of IBC, 2016 have no specific provisions in relation to the same. However, it would be a futile exercise, if we direct a member of the CoC who has already expressed its inability to make the payment towards the CIRP costs. The IBC, 2016 being a time bound process ; the RP cannot run from pillar to post to collect the CIRP cost. Hence, on equity, since the first respondent cannot contribute towards the CIRP costs, the first respondent is debarred from participating in the meetings of the CoC. Also, the first respondent has categorically stated in the counter that they are not the financial creditor in respect of the corporate debtor and they are acting only as an arranger for DBS Bank Ltd., Singapore. Since both of them are not ready to bear the CIRP costs, both the first respondent as well as DBS Bank L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 49.85 2. Canara Bank 13.43 3. DBS Bank India Ltd. 11.83 4. Standard Chartered Bank (India) 7.39 5. Standard Chartered Bank (UK) 12.81 6. Axis Bank Ltd. 4.69 Total 100 4. Learned counsel for the applicant submitted that in the second CoC meeting held on July 10, 2020 discussions were made as to the ratification of the cost incurred to the tune of ₹ 16,02,392 from the date of commencement of CIRP till the date of the second CoC meeting and the following resolution was passed : (i) Resolved that the CIRP costs of ₹ 16,02,392 for the period from May 8, 2020 till July 7, 2020 is approved, being expenditure towards essential commodities, i. e., water, electricity, housekeeping, sanitization, etc., are also approved. (ii) Further resolved that the member banks may ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arty, since the first respondent has not sanctioned any facilities in relation to the corporate debtor, but is only acting as the power of attorney holder for DBS Bank Ltd., Singapore as its security trustee/arranger. It was submitted by learned counsel for the first respondent that they had given external commercial borrowing (ECB) facility to the corporate debtor and that the said facility would require approval from the Reserve Bank of India (RBI) in view of the fact that the disbursement of the amount was being made by DBS Bank Ltd., Singapore through its branch at Anna Salai, Chennai to the account of the corporate debtor and accordingly, the RBI vide its letter dated November 17, 2011 has stated that the disbursement of the funds to be made to the corporate debtor through the approval route as per its Regulations/Guidelines. Further, it was submitted that on February 28, 2019 the RBI had approved the scheme of amalgamation wherein all the branches of DBS Bank Ltd., in India would function as DBS Bank India Ltd., with effect from March 1, 2019. Therefore, it was submitted that for all the purposes of the subject transaction, DBS Bank Limited., Singapore was the lender and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on May 22, 2020 and the claim was filed by (1) DBS Bank Ltd., Singapore and (2) DBS Bank India Ltd. Thus, it is clear both the banks have filed a single claim form before the IRP. Even though the claim form was filed jointly by both the aforementioned banks, the claim form is seen to have been signed by one Mr. Ravi Roshan, Vice-President of DBS Bank India Ltd., First Floor, Capitol Point, Baba Kharak Singh Marg, Connaught Palace, New Delhi-110 001 and not in the capacity of DBS Bank Ltd., Singapore. Further, at this juncture it is relevant to refer to clause 9 of the claim form C filed by the first respondent which is reproduced hereunder : 9. Details of the bank account to which the amount of the claim or any part thereof can be transferred pursuant to a resolution plan Bank DBS Bank India Ltd. A/c. No. 820LIABITSCLGINR IFSC Code DBSS0IN0811 13. A perusal of the aforesaid table shows that in the claim form filed by the first respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... member of the CoC, it is mandatory for them to contribute towards the CIRP costs. Further, it is significant to note here that the financial creditor is exercising its voting right in respect of the corporate debtor has also been empowered to decide and vote upon the future state of the corporate debtor. Thus, the financial creditor cannot shy away from their liability of payment towards the expenditure incurred on account of the CIRP in relation to the corporate debtor. 17. Further, the IBC, 2016 being a time bound process ; the RP cannot run from pillar to post to collect the CIRP cost. Hence, on equity, we are of the considered view that since the first respondent cannot contribute towards the CIRP costs, the first respondent is debarred from participating in the meetings of the CoC. Also, the first respondent has categorically stated in the counter that they are not the financial creditor in respect of the corporate debtor and they are acting only as an arranger for DBS Bank Ltd., Singapore. Since both of them are not ready to bear the CIRP costs, we are of the considered view that both the first respondent as well as DBS Bank Ltd., Singapore cannot participate in the mee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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