TaxTMI 
TaxTMI 
2018 (3) TMI 1454
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....e Applicant herein by invoking statutory power issued termination notice against the Corporate Debtor on 4.3.2017. By the Agreement entered between the Applicant and Corporate Debtor, the Corporate Debtor is entitled to make use of dock water area around 50,000 M2 from the break water for parking the Floating Dry Dock (FDD) to do business. 3. The Applicant herein submits that the corporate debtor having failed to discharge their obligations, the Floating Dry Dock of the Corporate Debtor at Mormugao Port has already started sinking being positioned close to another abandoned vessel which has grounded within the area in possession of Corporate Debtor which contains about 350 tonns of fuel oil whereby there is high possibility of danger to the grounded vessel with a threat of oil spill that would cause environmental damage to the ecology and to the biodiversity of the area which thereafter cannot be compensated in terms of money as well as by way of undoing the damages. This was informed to the Corporate Debtor herein on 17.05.2017 itself by Director General of Shipping Mercantile Marine Dept. by giving a notice u/s 356 (J) of the Merchant Shipping Act, 1958 to the Corporate Debtor s....
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....the Corporate Debtor failing which, the Collector orders further action in terms of the Disaster Management Act, 2005. 6. The Applicant submits that the wreckage of FDD can affect the cruise business of the Port since it poses environmental threat, in view thereof, the Applicant u/s 14 of Indian Port Trust Act has proposed to hold auction of the FDD on 09.02.2018. The Applicant submits the action is purely to avoid environmental hazard as directed by the Dist. Authority of Disaster Management. 7. The Applicant further submits when Workers union of Corporate Debtor filed WP 882/2017 before the Hon'ble High Court of Bombay-Goa seeking the relief of injunction against this Applicant, the Hon'ble High Court on being satisfied by the submissions of the Applicant, permitted this Applicant for auctioning the wreckage. 8. Since moratorium has been declared in respect of the affairs of the Corporate Debtor, the Applicant has come before this Bench to place the ground reality explaining as to what danger is likely to occur in case immediate action is not taken in pursuance of the Dist. Disaster Management Authority. 9. To which the Resolution Professional representing the Corporate Debto....
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....ter Management Act, 2005. When such an action being ordered, can anybody remain waiting until the Resolution Professional/Corporate Debtor take necessary steps to remove the sinking FDD from the Port. If for any reason, such salvage operations are put to stay in the light of the declaration of moratorium, what will happen if any grave occurrence taken place? Instead of applying equity, let us look into as to whether overriding effect and the moratorium directions given under Insolvency & Bankruptcy Code will have any bearing on the Disaster Management Act, 2005. 12. In the light of the submissions made by the Goa Port Trust Authority, Resolution Professional and ICICI Bank, if you set the overriding effect of Insolvency & Bankruptcy Code against The Disaster Management Act 2005, then we can realize which enactment prevails over which enactment. Both are central enactments. It is also a fact that the Disaster Management Act 2005 is a prior enactment to Insolvency & Bankruptcy Code; therefore, normally later enactment prevails over prior enactment provided both are pari passu to each other. As to non-obstante clause, both (section 72 of the Disaster Management Act, 2005 and section ....
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....d to it, as may be necessary, and such officer or department shall be bound to carry out such order. 34. For the purpose of assisting, protecting or providing relief to the community, in response to any threatening disaster situation or disaster, the District Authority may - (a) give directions for the release and use of resources available with any Department of the Government and the local authority in the district; (b) control and restrict vehicular traffic to, from the within, the vulnerable or affected area; (c) control and restrict the entry of any person into, his movement within and departure from, a vulnerable or affected area; (d) remove debris, conduct search and carry out rescue operations; (e) provide shelter, food, drinking water and essential provisions, healthcare and services; (f) establish emergency communication systems in the affected area; (g) make arrangements for the disposal of the unclaimed dead bodies; (h) recommend to any Department of the Government of the State or any authority or body under that Government at the district level to take such measures as are necessary in its opinion; (i) require experts and consultants in the relevant....