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TMI Blog2024 (3) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... d Miscellaneous Provisions Act, 1952. This Tribunal taking note of the claim under Section 14B took the view that the Central Board is empowered to waive the damages under Section 14B as per the scheme under the 1952 Act. It was observed that Section 14B referred to recommendation by Board under the 1952 Act. The said Act having been repealed and now repealed by the IBC Code, the power of recommendation can be exercised by NCLT. This Tribunal ultimate directions in paragraph 18(i) (c) permitted the SRA to make an application to Central Board for waiver of 100 per cent damages along with the copy of the order. In the facts of the present case, we are inclined to grant liberty to SRA to make an application to the Central Board for waiver of the amount of damages under Section 14B as provided in Section 14B of the 1952 Act. Now coming to another part of the claim which was admitted in the CIRP i.e. amount under Section 7Q amounting to Rs.75,62,576/- - the said amount is required to be paid by SRA to the Appellant. The SRA- Respondent No.3 is directed to make payment of amount of Rs.75,62,576/- within the period of two months from today to the Appellant which was admitted claim under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority has noticed the details of the amount claimed, amount admitted and the amount proposed to be paid in the plan. Appellant aggrieved by the order dated 11.05.2021 passed by the Adjudicating Authority approving the Resolution Plan in which only amount proposed was amount under Section 7A has come up in this Appeal. 2.2. Notices were issued on 14.03.2022 in this Appeal noticing the submission of the Appellant which order is as follows:- 14.03.2022: Learned Counsel for the Appellant submits that although Amount under Section 7A of the EPF Act has been paid. The Amount as determined under Section 7Q and 14B has not been paid in the Resolution Plan. He submits that he was entitled for entire payment which was also admitted by the IRP. 2. Issue Notice. Learned Counsel for the Respondent appears and accepts notice. Respondent to file Reply- Affidavit within two weeks. Rejoinder, if any, may be filed within two weeks, thereafter. List this Appeal For Admission (After Notice) on 12th April, 2022. 2.3. A reply has been filed by the Resolution Professional as well as the Successful Resolution Applicant. 3. We have heard Shri B.B. Pradhan, Learned Counsel for the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the Corporate Debtor and employees are working without any objection or protest. There is no illegality of approval of the Resolution Plan which has been approved by 100% voting share of the CoC. No irregularity has been committed in the process of the CIRP. SRA has successfully implemented the plan. Implementation report of the plan dated 02.02.2022 has been submitted. Appellant having received the amount as proposed in the plan is not entitled to file this Appeal. 7. We have considered the submissions of the Counsel for the parties and perused the record. 8. The claim submitted by the Appellant and the claim admitted by the Resolution Professional as well as the amount proposed have been noticed in paragraph 15 of the judgment of the Tribunal, which is as follows:- 15. The Applicant submit the relevant information with regard to the amount claimed, amount admitted and the amount proposed to be paid by the Resolution Applicant, i.e., Glix Securities Pvt. Ltd., under the said Resolution Plan is tabulated as under:- Sl. No. Creditor Amount claimed Amount Admitted % share in CoC Amount proposed in Resolution Plan (in Rs.) Financial Creditors 1. Indian Overseas Bank 24,44,73,641 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Professional for Jet Airways (India) Ltd. Anr.- is allowed. The Successful Resolution Applicant is directed to make payment to the Appellant of provident fund dues as admitted by the Resolution Professional. 12. Judgment relied by the Counsel for the Appellant in Company Appeal (AT) (Insolvency) No.29 of 2021 also do support the submissions of the Appellant. In paragraphs 28, 29 and 30, this Tribunal held:- 28. Having regard to the ratio of the Judgement in Jet Aircraft Maintenance Engineers Welfare Association (Supra) of this Tribunal, upheld by the Hon ble Apex Court, this Tribunal is of the earnest view that PF and Gratuity is to be paid in full as per the provisions of EPF and NP Act, 1952 and payment of Gratuity Act, 1972. Since admittedly the amounts paid are only 35.13% having treated them as Secured Creditors , we are of the considered view that indeed there was a violation of the provisions of Section 30(2) of the Code, with respect to the payment of PF and Gratuity only. 29. As regards the other allegations, raised by the Appellant with respect to undervaluation and the scope and performance of SRA in taking over the unit are sans evidence and this `Tribunal , does not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered to waive the damages under Section 14B as per the scheme under the 1952 Act. It was observed that Section 14B referred to recommendation by Board under the 1952 Act. The said Act having been repealed and now repealed by the IBC Code, the power of recommendation can be exercised by NCLT. In paragraphs 13 and 14 of the judgment, following was held:- 13. The above provision indicates that the Central Board is empowered to waive the damages under Section 14B of the Act. The Para 32B of the Scheme provides that Board for Industrial and Financial Reconstruction for reasons to be recorded in its schemes, in this behalf recommends, waiver of damages up to 100 per cent may be allowed. After enforcement of IBC, the provisions of Board for Industrial and Financial Reconstruction and Sick Industrial Companies (Special Provisions) Act, 1985 were repealed and earlier statutory regime for rehabilitation is now substituted by Insolvency Regime as contained in IBC. Thus when Insolvency Resolution Process has been initiated against a Corporate Debtor and Resolution plan has been approved under IBC, power of Central Board to reduce or waive the damages can be exercised with regard to the damages ..... X X X X Extracts X X X X X X X X Extracts X X X X
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