Tribunal orders full rent payment post CIRP, stays termination notice pending further review.

The Tribunal directed the Resolution Professional to pay the rent post CIRP period in full after deducting applicable amounts. Regarding the termination of a contract without notice, the Tribunal stayed the termination notice issued by Tata Consultancy Service Limited, emphasizing the need for further examination of facts and adherence to the contract terms until a later date.

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Issues:
1. Payment of rent post CIRP period
2. Termination of contract without notice

Payment of rent post CIRP period:
In the first issue, the Tribunal clarifies the liability of the Resolution Professional (RP) regarding the payment of rent post the Corporate Insolvency Resolution Process (CIRP) period. The RP is directed to make the payment of the entire amount due with regard to the rent, after deducting any applicable amounts like GST. The order emphasizes that the liability of the corporate debtor is only with regard to post CIRP period, not from the CIRP period.

Termination of contract without notice:
The second issue involves the termination of a contract dated 01.12.2016 without serving a notice. The Applicant contends that the termination by the respondent, Tata Consultancy Service Limited, without notice, would seriously affect the business of the corporate debtor, as substantial capital expenditure was incurred for providing services. The respondent argues that there is an arbitration clause, and dissatisfaction with the services was communicated to the corporate debtor before the CIRP period. The Tribunal opines that the termination without serving a notice is not correct and stays the termination notice issued by the respondent, directing adherence to the terms of the contract until further consideration on 30.01.2020. The matter requires detailed examination of facts and circumstances to determine the legality of the termination.

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