Creditors' appeal denied, repayment post-moratorium deemed illegal. Refund ordered within 30 days.

The appeal by three creditors against an order directing repayment post-moratorium was dismissed by the National Company Law Tribunal, Kolkata Bench. The Tribunal upheld the Adjudicating Authority's decision, deeming the transfer of funds to creditors during the moratorium period as illegal. The creditors were instructed to refund the amount to the Corporate Debtor within 30 days, with the Resolution Professional authorized to initiate contempt proceedings if the directive was not followed.

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Issues:
1. Appeal against order directing repayment post moratorium.

Analysis:
The judgment pertains to an appeal by three creditors against an order passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, directing them to repay the sum received from the Corporate Debtor after the imposition of a moratorium. The appellants argued that they were unaware of the moratorium order as it was passed on 15th January, 2018, and published in the newspaper on 22nd January, 2018. However, the Tribunal rejected this argument, stating that the moratorium order was effective from the date of passing and that the Corporate Debtor, under the control of the Resolution Professional, had no authority to make payments to creditors during the moratorium period. The Tribunal deemed the transfer of funds to the creditors as illegal and upheld the Adjudicating Authority's decision to order repayment.

The Tribunal found no merit in the appeal and dismissed it. The appellants were directed to refund the amount to the Corporate Debtor within 30 days. Failure to comply would empower the Resolution Professional to seek contempt proceedings before the Adjudicating Authority. The appeal was dismissed with these directions, affirming the Adjudicating Authority's decision to order repayment by the creditors who received funds post the moratorium period.

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