Tribunal rules in favor of Applicant on outstanding dues during insolvency resolution process.

The Tribunal ruled in favor of the Applicant, holding that the outstanding dues, including rescheduled installments and lease rent, that became payable during the Corporate Insolvency Resolution Process (CIRP) period were indeed payable. The Respondent was directed to make the payment of the current amount due within six months or include it as Insolvency Resolution Process Cost. The decision emphasized the necessity of honoring lease terms and obligations under the Insolvency and Bankruptcy Code (IBC) even during the moratorium period.

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Issues Involved:
1. Whether the claim of the applicant regarding the payment of dues after the commencement of the CIRP is liable to be paid by the Respondent to the Applicant.
2. Whether the moratorium under Section 14 of the IBC bars the payment of lease rent and premium during the CIRP period.
3. Whether the lease rent and premium qualify as essential supplies under Regulation 32 of the IBBI Regulations, 2016.

Issue-wise Detailed Analysis:

1. Payment of Dues Post-CIRP Commencement:
The Applicant sought payment of outstanding dues that became payable during the CIRP period, including rescheduled installments and lease rent. The Respondent argued that these dues were not payable under the moratorium imposed by Section 14 of the IBC. The Tribunal examined the relevant regulations and concluded that the dues for the period from 11.10.2019 to 30.06.2021, as claimed by the Applicant, were indeed payable. The Tribunal directed the Respondent to make the payment of the current amount due within six months or include the amount as Insolvency Resolution Process Cost under Regulation 31 of the IBBI Regulations.

2. Moratorium Under Section 14 of IBC:
The Respondent contended that Section 14 of the IBC, which imposes a moratorium on the recovery of dues, barred the payment of the claimed amounts. The Tribunal referred to Section 14(1)(d) and its explanation, which allows the continuation of licenses, permits, and leases during the moratorium period, provided there is no default in payment of current dues. The Tribunal concluded that the lease premium and lease rent for the period in question were payable to the Applicant, as non-payment would lead to the suspension or termination of the lease, which is not protected under the moratorium.

3. Essential Supplies Under Regulation 32:
The Respondent argued that the lease rent did not qualify as essential supplies under Regulation 32 of the IBBI Regulations, which only includes electricity, water, telecommunication services, and information technology services. The Tribunal agreed that lease rent does not fall under the category of essential supplies. However, it emphasized that the explanation to Section 14(1) of the IBC mandates the payment of current dues for the continuation of the lease during the moratorium period. Thus, even though lease rent is not an essential supply, it must still be paid to avoid suspension or termination of the lease.

Conclusion:
The Tribunal allowed the application, directing the Respondent to pay the current dues or include them as Insolvency Resolution Process Cost. The Resolution Professional was also given the liberty to negotiate with the Applicant for rescheduling the payment of installments. The decision underscores the importance of adhering to the terms of the lease and the obligations under the IBC, even during the moratorium period.

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