TaxTMI 
TaxTMI 
2019 (8) TMI 1720
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....r Singh, Mr. Yashvardhan, Ms. Kritika Nagpal and Mr. Kanishk Rana, Mr. P.K. Jain and Mr. Saurabh Jain, Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. During the 'Corporate Insolvency Resolution Process' against 'Videocon Industries Limited' (Corporate Debtor), the Union of India, Ministry of Petroleum & Natural Gas (Exploration Division), Shastri Bhawan, New Delhi - 110 001 issued Demand Notice dated 22nd October, 2018 to the 'Corporate Debtor' raising demand as quoted below: "3. You are, therefore, advised to assign and allocate 100% of the Sale Proceeds/Oil and Gas Invoices in favour of Government, with immediate effect for recovering the provisional sum of US $ 314 million together with applicable interest towards t....
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....n Ltd. are restrained and not to remit sale proceeds which are due to this Corporate Debtor i.e. Videocon Industries Limited. Status quo shall be maintained i.e. the Respondent No. 3 to 6 shall continue to pay the share to VIL as adopted hitherto. 9. This Miscellaneous Application is disposed of accordingly." 3. The aforesaid order dated 13th March, 2019 has been challenged by 'Union of India and another'. 4. The brief facts of the case are that a 'Production Sharing Contract' was executed on 28th October, 1994 between the government and the following four parties on 28th October, 1994, having percentage of participating interest as follows: S. No. Name of Party % Participating Interest 1 ONGC Ltd. ("ONGC") ....
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....erty of the Union of India and 'profit petroleum' of public property. The 'Resolution Professional' had miserably failed to prove as to why Union of India is not entitled to claim its share of profit on the petroleum product. Reliance has been placed on Article 28.1 of the ''Production Sharing Contract' to suggest that Union of India is the sole owner of the entire petroleum from the Contract Area. It was further submitted that as per Articles 15.8 and 16.4 of the 'Production Sharing Contract', the allocation of petroleum towards 'cost petroleum' and 'profit petroleum' requires the approval of the Management Committee and the Central Government. It was alleged that the 'Corporate Debtor' through 'Resolution Professional' is trying to defeat....
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....ated) joint venture. Clause 8.3 (b) of the 'Production Sharing Contract' provides that the contractor shall conduct all petroleum operations within the contract area diligently, expeditiously, efficiently and in safe and workman like manner in accordance with good international petroleum industry practices pursuant to the approved work programme. Clause 7.2 of the 'Production Sharing Contract' provides that the 'operating function' required of the contractor under this contract has to be performed by the operator on behalf of all the parties comprising contractor subject to, and in accordance with, the terms and provisions of the contract and generally accepted international petroleum industry practice. 13. According to 'Resolution Profe....
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....m perusal of the record we find that the as per procedure the amount in question has been deposited with the 'Videocon Industries Limited (Corporate Debtor) in the light of the 'Joint Operation Agreement' and 'Production Sharing Contract' as discussed above. It is in this background, the impugned notice dated 22nd October, 2018 was issued by Union of India, Ministry of Petroleum & Natural Gas (Exploration Division), Shastri Bhavan, New Delhi. 16. It is true that the aforesaid demand notice has no relevancy with the award and the 'Resolution Professional' cannot rely on the award for the purpose of deciding whether it is payable to the Union of India or not, during the 'Corporate Insolvency Resolution Process'. 17. The Adjudicating Aut....