TaxTMI 
TaxTMI 
2020 (4) TMI 514
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....dent to pay the dues to the Corporate Debtor can be made by the Liquidator and in the case of the Corporate Debtor herein, the Liquidation was commenced by the Order dated 12-10-2018 of this Hon'ble Tribunal and as such the question of any delay in filing this application does not arise as the Liquidation is underway even presently. 4. The brief facts of the case are set out herein below; a. The Corporate Insolvency Resolution Process (CIRP) in respect of the Corporate Debtor was initiated by its Operational Creditor under Petition No. TCP/95/IB/2017 and the Adjudicating Authority commenced the CIRP by order dated 2-1-2018 and Mr.R. Sadasivan was appointed as Resolution Professional in order to carry out the CIRP under the Code and subsequently the Adjudicating Authority commenced the liquidation by order dated 12-10-2018 and Mr.R.Sadasivan was appointed as Liquidator in order to carry out the liquidation proceeding under the Code. b. The Corporate Debtor i.e. Surana Industries Limited on whose behalf this application is filed owes over Rs. 2150 Crores to Banks and Financial Creditors and the bulk of the money is owed to Public Sector Banks. The Liquidation value is not ev....
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.... g. As per the alleged inter-company transfer, the Respondent claims that M/s. Tribovan Enterprises Private Limited has to pay to the Corporate Debtor and also claims that M/s.Tribovan Enterprises Private Limited was nothing but sister concern of the Corporate Debtor and the said alleged transfer was duly acknowledged by the Corporate Debtor. Based on this contention, the Applicant in the capacity of Liquidator had verified the records and books of account of "the Corporate Debtor in order to find out the validity of the alleged inter-company transfer. It is seen that there is nothing in the records of the Corporate Debtor to substantiate the contention made by the Respondent and Corporate Debtor neither acknowledged the said alleged transfer nor accounted the said entry on the records of the Corporate Debtor. The Applicant has further stated that Tribovan Enterprises Limited was not a sister concern at all as claimed by the Respondent, which is false and misleading and the same has been duly intimated to the Respondent vide letter dated 23-12-2018. h. It is further submitted that the alleged inter-company transfer is nothing but a "SHAM" and is an illegitimate attempt by the R....
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....s for the past years which clearly implies that the inter-company adjustment has been taken place and the dues were setoff accordingly by the Corporate Debtor. However, only because the Corporate Debtor is under liquidation, it does not give the privilege for the Applicant to send the notices, claiming for the debts which were already settled. e. The Respondent maintains their stance of the inter company adjustments/tripartite agreement were entered into between the Corporate Debtor, sister company of the Corporate Debtor i.e. M/s.Thribovan Enterprises Limited and the Respondent and they even prays for lifting the corporate veil of Thribovan Enterprises Limited; the sister company. 7. It is observed from the Rejoinder Affidavit filed by the Applicant that: a. The Corporate Debtor viz. Surana Industries Limited on whose behalf this application was filed owes over Rs. 2150 Crores to Banks and Financial Creditors and the bulk of the money is owed to Public Sector Banks. The Liquidation value is not even a small fraction of the claims even of the Financial Creditors let alone the total admitted claims against the Corporate Debtor in the CIRP such total admitted claims being Rs. 21....
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....aying further time for making final submissions on 26-7-2019 the matter was posted on 12-9-2019, on which date the Respondent submitted for filing additional documents and the matter was put up on 04-10-2019, on which date the additional document was not seen to have been filed, but the Respondent again sought for time to file the additional documents which is reportedly filed before the Tribunal on 21-10-2019, accompanied by two letters, the contents of which are reproduced below: "RKKR Steels Date: 8-1-2016 To M/s. Surana Industries Ltd., No. 29, White Road, II Floor, Royapettah, Chennai - 600 014 Dear Sir, Sub: Transfer of Amount to M/s. Thribovan Enterprises Pvt. Ltd. - reg. With reference to the above, we have Credit balance in your account for Rs. 24,36,00,048 (Rupees Twenty Four Crores Thirty Six Lakhs and Forty Eight only), we request you to kindly transfer this amount by debiting M/s.Thribovan Enterprise Pvt. Ltd. and give credit to RKKR Steels Limited in your books of account. Please pass necessary entries in your books of account with an intimation to us. Thanking you, Yours faithfully, For RKKR Steels Limited Sdxxxxxxx Authorized Signatory Roun....
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....uch documentary proof is produced by the Respondent in order to cogently substantiate such a claim of non-existence of the debt. It is unknown to sound business principles and prudent commercial practices that such a huge claim is set off under the pretext of mutual owing without the support of approval of the competent authority. Further, such a proof of letter of set off has been produced in the later stage of hearing after the expiry of eight (8) months from the inception of the proceedings before this Tribunal. Hence, the claim of the Respondent Company on the basis of a letter to the effect that the amount due to the Applicant Corporate Debtor from the Respondent has been settled is prima facie an afterthought and is highly obnoxious and thus is rejected by this Tribunal. 11. This Tribunal has examined the arguments submitted by the Counsel for the Respondent and the averments made in their Counter pertaining to Limitation of the claim of the Applicant Corporate Debtor against the Respondent for a sum of Rs. 24,36,00,048 (Rupees Twenty Four Crores Thirty Six Lakhs and Forty Eight only). It is cardinal principle of law relating to Insolvency and Bankruptcy to exclude the morat....
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....sion of the corporate debtor. Explanation.-For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a licence, permit, registration, quota, concession, clearance or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license or a similar grant or right during moratorium period. Section 60 (6). Notwithstanding anything contained in the Limitation Act, 1963 or in any other law for the time being in force, in computing the period of limitation specified for any suit or application by or against a Corporate Debtor for which an order of moratorium has been made under this Part, the period during which such moratorium is in place shall be excluded." 14. The Learned Counsel for the Respondent contended that the words 'by' or 'against' a corporate debtor a....