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TMI Blog2024 (3) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... ution process and by order dated 12th December, 2017, passed by the National Company Law Tribunal (the "NCLT"), Mumbai Bench, the resolution plan submitted by the Insolvency Resolution Professional entitling the Respondent to 15% of the claim amount was approved. Thereafter, perhaps unknown to the MSEFC, the Applicant was directed by award dated 3rd March, 2018, passed by the MSEFC, to pay the Respondent a sum of Rs. 2,87,500/- along with interest till realisation of the amount by the Respondent. 3. Thereafter, the Respondent called upon to Applicant to pay the outstanding amount. After receipt of the said communication, the Applicant sent a letter dated 21st May, 2018, to the Respondent and thereafter, the Respondent called upon the Applicant to furnish copy of the order dated 12th December, 2017, along with the resolution plan. 4. However, since the Applicant failed to pay the amount of the award, the Respondent took out an Execution Application No. 787 of 2019 before this Court for recovery of Rs. 8,73,159.70. 5. Thereafter, on 18th December, 2019, the Applicant took out this Interim Application for setting aside the warrant of attachment, submitting that the arrangement towa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such unilateral action taken on the part of the judgment debtor under the IBC. Prima-facie I am not in agreement with Mr. Soman, learned Counsel for the judgment debtor when he contends that the applicant is now required to accept the meager amount of Rs. 45,000/- which is assigned in favour of the applicant to be received by the applicant in the year 2022 when the decree itself is for an amount of about Rs .8 Lakhs (principal amount and interest). 3. Consequently keeping open all these issues noted above, let the applicant approach the appropriate authorities under the IBC with its plea. All contentions of the parties in that regard are expressly kept open. 4. In the circumstances, proceedings are required to be adjourned. 5. Stand over to 3 March 2020. 6. Mr. Sawant, learned Counsel for the applicant states that an application under the IBC would be moved within two weeks from today." 7. That pursuant to the liberty granted vide the aforesaid order of this Court, the Respondent approached the NCLT, Mumbai by application M. A. 718 of 2020 seeking declaration that the order dated 12th December, 2017, passed by the Tribunal approving the resolution plan was not bindin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority to whom the debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed, guarantors and other stakeholders involved in the resolution plan. Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub-section, satisfy that the resolution plan has provisions for its effective implementation. (2) Where the Adjudicating Authority is satisfied that the resolution plan does not confirm to the requirements referred to in sub-section (1), it may, by an order, reject the resolution plan. (3) After the order of approval under sub-section (1),- (a) the moratorium order passed by the Adjudicating Authority under section 14 shall cease to have effect; and (b) the resolution professional shall forward all records relating to the conduct of the corporate insolve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re usefully quoted as under:- "93. As discussed hereinabove, one of the principal objects of the I&B Code is providing for revival of the corporate debtor and to make it a going concern. The I&B Code is a complete Code in itself. Upon admission of petition under Section 7 there are various important duties and functions entrusted to RP and CoC. RP is required to issue a publication inviting claims from all the stakeholders. He is required to collate the said information and submit necessary details in the information memorandum. The resolution applicants submit their plans on the basis of the details provided in the information memorandum. The resolution plans undergo deep scrutiny by RP as well as CoC. In the negotiations that may be held between CoC and the resolution applicant, various modifications may be made so as to ensure that while paying part of the dues of financial creditors as well as operational creditors and other stakeholders, the corporate debtor is revived and is made an on-going concern. After CoC approves the plan, the adjudicating authority is required to arrive at a subjective satisfaction that the plan conforms to the requirements as are provided in sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (21) of Section 5 thereof would reveal that even a claim in respect of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority would come within the ambit of "operational debt". The Central Government, any State Government or any local authority to whom an operational debt is owed would come within the ambit of "operational creditor" as defined under clause (20) of Section 5 of the I&B Code. Consequently, a person to whom a debt is owed would be covered by the definition of "creditor" as defined under clause (10) of Section 3 of the I&B Code. As such, even without the 2019 Amendment, the Central Government, any State Government or any local authority to whom a debt is owed, including the statutory dues, would be covered by the term "creditor" and in any case, by the term "other stakeholders" as provided in sub-section (1) of Section 31 of the I&B Code. 102.1. That once a resolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor and its employees ..... X X X X Extracts X X X X X X X X Extracts X X X X
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