https://www.taxtmi.com/caselaws?id=760583 The NCLAT Principal Bench set aside the Adjudicating Authority's direction to keep Annual Mine Closure Cost (AMCC) outside the Corporate Insolvency Resolution Process. The tribunal held that AMCC belonged to the Corporate Debtor under the Escrow Agreement terms, which provided for return of funds after mine closure completion. Recovery of unpaid AMCC as pre-CIRP dues violated Section 14 moratorium provisions of IBC. The tribunal ruled that allowing AMCC to remain outside CIRP would grant respondents preferential status over other creditors, defeating the purpose of insolvency proceedings and prejudicing secured financial creditors. Appeal was allowed. en-us Wed, 23 Oct 2024 00:00:00 +0530 Thu, 24 Oct 2024 08:15:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760583 The NCLAT Principal Bench set aside the Adjudicating Authority's direction to keep Annual Mine Closure Cost (AMCC) outside the Corporate Insolvency Resolution Process. The tribunal held that AMCC belonged to the Corporate Debtor under the Escrow Agreement terms, which provided for return of funds after mine closure completion. Recovery of unpaid AMCC as pre-CIRP dues violated Section 14 moratorium provisions of IBC. The tribunal ruled that allowing AMCC to remain outside CIRP would grant respondents preferential status over other creditors, defeating the purpose of insolvency proceedings and prejudicing secured financial creditors. Appeal was allowed. Case-Laws IBC Wed, 23 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760583