9911796707
TMI Blog2022 (4) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Authority under the Minimum Wages Act, 1948, directing the Corporate Debtor, represented by the Liquidator to pay an amount of Rs. 17,240/-, being the minimum wages and compensation payable to three erstwhile employees of M/s. Orieon Kuries and Loans Private Limited. 2. The National Company Law Tribunal ('NCLT') for short), Chennai, by Ext.P1 order dated 15.01.2018, ordered liquidation of the Corporate Debtor M/s. Orieon Kuries and Loans Private Limited, in terms of the provisions under the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the 'Code', for short). Sri. Sankar P. Panicker was appointed as the Liquidator to initiate the liquidation process. 3. While so, the petitioner received summons from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. 6. It is also contended by the petitioner that, as per Section 33(5) of the Code, after Ext.P1 liquidation order, no suit or legal proceedings can be instituted against the Corporate Debtor. Section 33 of the Code is extracted hereunder:- 33. Initiation of liquidation:- 33. (1) Where the Adjudicating Authority, - (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. (6) The provisions of sub-section (5) shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (7) The order for liquidation under this section shall be deemed to be a notice of discharge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r set out in section 52; (c) wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date; (d) financial debts owed to unsecured creditors; (e) the following dues shall rank equally between and among the following:- (i) any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date; (ii) debts owed to a secured creditor for any amount unpaid following the enforcement of security interest; (f) any remaining debts and due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33(5) of the Code will not operate. Since the liquidation proceedings is a subsequent development after filing the claim petition, the 2nd respondent contends that the Controlling Authority is competent to pass Ext.P3 order. 9. M/s. Orieon Kuries and Loans Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP) since 10.07.2017 and upon failure to resolve the insolvency, the NCLT, in exercise of the powers under Section 33 (1) (a) of the Code, by Ext.P1 order dated 15.01.2018, ordered liquidation of the Corporate Debtor. The moratorium which was in force from 10.07.2017 ceased to have effect from 15.01.2018. Under Section 14(1) (a) of the Code, on declaration of moratorium, the institution of suits or continuation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority was well within its powers to pass Ext.P3 order during the liquidation process. 10. With regard to the contention of the petitioner that in terms of Section 53 (1) (b) (i) of the Code, the dues to the employees relating to past two years from the date of liquidation ie., 15.01.2018, can alone be distributed from the sale of liquidation assets, it is to be noted that Section 53(1) deals with distribution of assets and the order of priority of distribution of liquidation assets. Under Section 53 (1) (b) (i) of the Code, priority is given for workmen's dues for the period of twenty-four months preceding the liquidation commencement date. It does not mean that the workmen's dues for the period prior to the said period need not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
