TaxTMI 
TaxTMI 
2020 (3) TMI 1130
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....olvency Resolution Process for Corporate Persons) Regulations, 2016 and rule 11 of the National Company Law Tribunal Rules, 2016. 2. The applicant herein, is the liquidator of the corporate debtor-company and was so appointed when the liquidation order was passed on July 8, 2019 by this Bench. Vide the aforesaid application, the applicant has sought clarity about the treatment of claims received on and from the period between July 18, 2018 till July 7, 2019 when the company was supposed to be revived under the resolution plan approved on July 17, 2018. 3. At the instance of State Bank of India/financial creditor, corporate insolvency resolution process (CIRP) of Adhunik Metaliks Ltd./corporate debtor was initiated by an order dated August....
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....nding on it and other stakeholders for almost a year after which the liquidation of the corporate debtor has commenced. 6. Accordingly, by order dated July 8, 2019 of this Adjudicating Authority, the company was sent to liquidation and thereafter the present applicant was appointed as the liquidator. The liquidation order dated July 8, 2019 was challenged and an interim order of stay of the operation of the said order was passed on July 17, 2019 which was eventually set aside on August 28, 2019. On and from that date, the liquidation process is being carried out. 7. The applicant states that several claims as on the liquidation commencement date have been received by the applicant which includes amount accrued and under for the period bet....
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....rim finance and the costs incurred in raising such finance ; (b) The fees payable to any person acting as a resolution professional ; (c) Any costs incurred by the resolution professional as running the business of the corporate debtor as a going concern ; (d) Any costs incurred at the expense of the Government to facilitate the insolvency resolution process ; (e) Any other costs as maybe specified by the Board. Under sub-section (16) of section 5 of the IBC-'Liquidation cost' means any cost incurred by the liquidator during the period of liquidation subject to such regulations, as may be specified by the Board." 12. In furtherance to the aforesaid provisions, regulation 2(1)(ea) and regulation 7(1) of the Insolvency and ....
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....ons and functions for a reasonable remuneration and such remuneration shall form part of the liquidation cost". 13. In view of the above proposition, the claims received during the period between July 18, 2018 till July 7, 2019 can neither be treated as a part of "insolvency resolution process costs" nor do they fall within the ambit of "liquidation cost" and hence, cannot be accorded priority over other dues in terms of the provisions of the law. 14. However, in respect of the aforesaid claims received during the period between July 18, 2018 till July 7, 2019 the applicant may rely on the statutory treatment of claims as laid down in section 53 of the IBC, which reads as follows : "(1) Notwithstanding anything to the contrary contained....