Tribunal dismisses stay application on Floating Dry Dock auction under IBC, emphasizes Disaster Management Act not affected.

The Tribunal dismissed the Corporate Debtor's application for a stay on the auction of the Floating Dry Dock (FDD), emphasizing that the Insolvency and Bankruptcy Code (IBC) moratorium does not affect actions under the Disaster Management Act. The Tribunal clarified that jurisdiction over such matters lies with the High Court or Supreme Court, not the Tribunal. The auction proceeds were directed to be deposited with the High Court, and grievances regarding the auction should be addressed there.

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Issues Involved:
1. Intervention by Mormugao Port Trust (MPT) for modification of an order.
2. Environmental threat due to the sinking Floating Dry Dock (FDD) of the Corporate Debtor.
3. Conflict between the Disaster Management Act, 2005 and the Insolvency and Bankruptcy Code, 2016.
4. Jurisdictional bar under both enactments.
5. Auction of the FDD and its implications.

Issue-wise Detailed Analysis:

1. Intervention by Mormugao Port Trust (MPT) for modification of an order:
The Mormugao Port Trust (MPT) sought intervention to modify an order dated 12.12.2017 to facilitate the statutory functioning of the Port Trust and comply with orders from the Hon’ble High Court and other statutory authorities. The Corporate Debtor had leased land and water area from MPT but failed to discharge their obligations, leading MPT to issue a termination notice on 4.3.2017. The Corporate Debtor's Floating Dry Dock (FDD) posed environmental risks due to its deteriorating condition.

2. Environmental threat due to the sinking Floating Dry Dock (FDD) of the Corporate Debtor:
The sinking FDD, positioned close to another abandoned vessel containing about 350 tons of fuel oil, posed a significant environmental threat. Notices from the Director General of Shipping and the Goa State Pollution Control Board highlighted the risk of oil spills and environmental damage. The District Disaster Management Authority ordered the Corporate Debtor to take immediate action to mitigate these risks, failing which MPT was directed to conduct salvage operations.

3. Conflict between the Disaster Management Act, 2005 and the Insolvency and Bankruptcy Code, 2016:
The Tribunal examined whether the moratorium under the Insolvency and Bankruptcy Code (IBC) would have any bearing on actions taken under the Disaster Management Act. The IBC's moratorium prevents proceedings against the Corporate Debtor, but the Disaster Management Act mandates immediate action to prevent environmental hazards. The Tribunal emphasized that environmental protection and public safety take precedence over economic interests.

4. Jurisdictional bar under both enactments:
The Tribunal analyzed the jurisdictional bars under both the IBC and the Disaster Management Act. The IBC restricts civil courts from intervening in matters under its jurisdiction, while the Disaster Management Act prohibits any court, except the Supreme Court or High Court, from entertaining actions against authorities acting under the Act. The Tribunal concluded that it lacked jurisdiction to interfere with actions taken under the Disaster Management Act.

5. Auction of the FDD and its implications:
MPT proposed to auction the FDD to prevent environmental hazards, as directed by the District Authority. The Corporate Debtor argued that the auction was undervalued and sought a stay, citing the IBC moratorium. However, the Tribunal noted that the High Court had already permitted the auction and directed the proceeds to be deposited with the High Court. The Tribunal clarified that grievances regarding the auction proceeds should be addressed to the High Court, not the Tribunal.

Conclusion:
The Tribunal disposed of MPT's intervention application, stating that the IBC moratorium does not affect actions taken under the Disaster Management Act. The Tribunal dismissed the Corporate Debtor's application for a stay on the auction as misconceived, emphasizing that only the High Court or Supreme Court has jurisdiction over such matters under the Disaster Management Act.

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