TaxTMI 
TaxTMI 
2022 (6) TMI 7
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....the respondent herein as the Interim Resolution Professional (IRP). Thereafter the respondent has made public announcement for submission of claims. The first meeting of Committee of Creditors (CoC) was convened on 25.11.2019 and the CoC resolved to appoint the IRP as the Resolution Professional (RP) of the Corporate Debtor. 3. It is stated that the respondent conducted an enquiry as part of the resolution of the dispute and found that the Corporate Debtor is non-operational and did not hand over the books of accounts/documents/contracts etc., and it has neither a Registered Office nor any staff or any resolution assets (except personal guarantees issued to Financial Creditors) for recovery. Since the Corporate Debtor did not have any Resolution Assets, Registered Valuers were not appointed and thus the Fair Value and Liquidation Value was Nil. 4. Even though M/s. Arabian Engineers and Fabrication, Fujairah, UAE as a Resolution Applicant has expressed its interest, no Resolution Plan was submitted within the last date fixed on 8th September 2021. Hence in the 10th meeting of the CoC held on 10.09.2021, it was decided to go for liquidation of the Corporate Debtor. Hence, as pe....
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....uments to prove his Claim such as the Contract of Employment, Certificate of Receivables, Salary Slip etc. 11. The Respondent, however, rejected the claim of the Appellant by Order/e-mail dated 19.01.2022 stating that the claim cannot be accepted due to lack of supporting documents. 12. The Appellant's salary was Rs. 1,00,000/- (Rupees One lakh only) per month. He was, therefore, an exempted employee under the Provident Fund Act and the ESI Act and therefore could not be registered under the EPF Act or the ESI Act. The Appellant was working as the Resident Construction Manager and thus not a workman and cannot approach the DLO or Labour Court. The Appellant has produced the Form 26AS Statement issued by the Income Tax Department for the Assessment Year 2015-16 to show that he has received the Income from the Company. Company Appeal/3/KOB/2022: 13. The Appellant was working as the Public Relations Officer of M/s. Albanna Engineering (India) Pvt. Ltd. He has stated that pursuant to the Public Announcement, he had submitted his Claim under Regulation 19 to the Respondent for Rs. 9,59,040/- (Rupees Nine lakh fifty nine thousand and forty) in Form E dated 05.01.2022, vid....
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....as the Employment letter, Dues Certificate, copy of Cheque, e-mail etc. 19. The Respondent, however, rejected the claim of the Appellant by Order/e-mail dated 06.01.2022 stating that outstanding documentary proof was not attached by the appellant. 20. The Appellant stated that his salary was Rs. 75,000/- (Rupees Seventy-five thousand only) per month. He was therefore an exempted employee under the Provident Fund Act and the ESI Act and therefore could not be registered under the EFF Act or the ESI Act. The Appellant who was working as the Lead Mechanical Engineer is not a workman and cannot approach the DLO or Labour Court. The Appellant has produced the IT Return for Assessment Year 2015-16 and 2016-17 and Form 16 issued by the Income Tax Department for the Assessment Year 2016-2017 to show that he has received the Income from the Company. Company Appeal/6/KOB/2022: 21. The Appellant was the Chief Operations Coordinator of M/s. Albanna Engineering (India) Pvt. Ltd. He has stated that pursuant to the Public Announcement, he had submitted his Claim under Regulation 19 to the Respondent for Rs. 12,00,000/- (Rupees Twelve lakh only) in Form E dated 04.01.2022, vide letter ....
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....s decision as held by the Hon'ble Supreme Court in (2010) 9 SCC 496-Kranti Associates Vs. Masood Ahmed, which the Liquidator has not done. Reply by Respondent/Liquidator: 27. The Respondent/Liquidator filed his reply and stated that he had filed an application MA/36/KOB/2019 under Section 19(2) of the Code inter alia for a direction to the Director of M/s. Albanna Engineering (India) Pvt. Ltd. to produce books of account, and this Tribunal vide order dated 11.12.2019 allowed the said application. Despite this direction, no books of accounts or any documents relating to the Corporate Debtor were furnished by the Director Mr. Mathew Kavalam to the Respondent. In the above circumstances, no books of account/contracts/documents, etc, with regard to the CD is with the Respondent and he could not go through the records and verify whether the appellants were employees of the Company M/s. Albanna Engineering (India) Pvt. Ltd. 28. There is no Human Resources records pertaining to the Corporate Debtor Company to show that the appellants were employees of the CD. For the said reason, the Respondent could not verify the genuineness of the documents produced along with the claim pe....
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.... M.S. Gill Vs. Chief Election Commissioner- AIR 1978 SC 851. 32. The contention that the signatory of the documents is a related party to the CD and therefore cannot be accepted is incorrect and unsustainable, as the Director or Managerial personnel can certify documents with regard to its employees and that Mr. Sreekumar Nair has thus issued the certificates based on the information available with him. Further, some documents signed by the said Mr. Sreekumar Nair, has been accepted by the Liquidator, and Claims of other operational creditors were allowed without any demur. 33. In reply to the Rejoinder, the Respondent/Liquidator submitted that he had allowed the claims of only those Operational Creditors who have produced the relevant claim through contract documents, court orders, garnishees, and confirmation from CD, holding company of CD confirmations and other related documents. Findings: 34. We have heard the learned counsel for the appellants Shri Terry V James and the learned counsel for the Liquidator Shri K.B. Arunkumar along with the learned Liquidator Shri Vinod Balachandran, who appeared through Video Conference and had gone through all the records produced....