TaxTMI 
TaxTMI 
TaxTMI 
2022 (12) TMI 97
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....h their voting share towards CIRP /Liquidation costs. In sum and substance, the Appellants have prayed for following reliefs: "i. To set aside the order dated 22.03.2021 in IA -1129/2021 In IB - 1330(ND)/2019 In the Matter Of M/S Elan Professional Appliances Private Limited Vs. M/S Customized Kitchen India Private Limited passed by the Ld. Adjudicating Authority. ii. to set aside the directions in order dated 22.03.2021 in IA-1129/2021 directing the appellants to contribute proportionately in accordance with their voting share towards CIPR/Liquidation cost; iii. To set aside the appointment of R-l as the liquidator; iv. To pass any such further or other order(s) as this Hon'ble Appellate Tribunal may deem fit and proper in the facts and circumstances of the case to grant justice to the appellants and the company." 3. Learned Counsel for the Appellants submitted that one Operational Creditor M/s. Elan Of the Corporate Debtor filed a petition under Section 9 of the Code for initiating CIRP alleging a default of Rs. 12,78,783/- (Rupees Twelve Lakh Seventy-eight Thousand Seven Hundred Eighty-three) and the same was admitted on 18.02.2020 by th....
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....that he has not received any amount from Operational creditor or from the appellant and since the CoC has not voted for settlement so he has continued with CIRP and CoC members are duty bound to bear the CIRP expenses proportionately. 11. Mr. Harshit Goel Ld. Amicus Curiae submitted that the suspended directors R2 & R3 have not given him any relevant paper to move forward with the case but based on available documents it looks like that IRP/RP/Liquidator should have closed the process at the initial stage itself when he could perceived that CD has only few assets like furniture etc. Now even if the CD is put to sale all the assets, they will not be in a position to realize even the bare fees of the IRP/RP. 12. We have carefully gone through the submissions made by ld. Counsel for the Appellant and the Liquidation in person including Amicus Curiae for the other Respondents and we are having the following observations: a. This is a clear case of misusing the provisions of the Code both by the Operational Creditor who has initiated the CIRP and the RP also. b. The Appellants are small suppliers and they don't want to be burdened with additional liability as their business ....
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....e proceeds payable to each class of recipients under sub-section (1), and the proceeds to the relevant recipient shall be distributed after such deduction. Explanation.-For the purpose of this section- (i) it is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, each of the debts will either be paid in full, or will be paid in equal proportion within the same class of recipients, if the proceeds are insufficient to meet the debts in full; and (ii) the term "workmen's dues" shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013." d. In view of aforesaid facts and circumstances, we are unable to agree with the Adjudicating Authority that the Operational Creditors are to bear the cost of CIRP/Liquidation and hence, we set aside the impugned order to the extent para 9.IX as appearing supra and rest part of the impugned order we uphold. Let Liquidation be continued and let amount be realized during Liquidation and be distributed in accordance with section 53 of the Code. We, accordingly, dispose of the appeal. No order as to costs. Interim order, ....
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.... IB-1330(ND)/2019 under Section 9 of the IBC against the Corporate Debtor viz., M/s. Customized Kitchen (India) Pvt. Ltd. (hereinafter referred as "Corporate Debtor") to initiate the Corporate Insolvency Resolution Process (hereinafter referred as "CIRP"), to declare moratorium and appoint Interim Resolution Professional (hereinafter referred as "IRP"). This Adjudicating Authority vide its Order dated 18.02.2020, admitted the Application, initiated the CIRP against the Corporate Debtor and appointed Mr. Gulshan Kumar Gupta as IRP. 4. It is averred that the CIRP was due for completion on 16.08.2020 however, due to lockdown period from 09.03.2020 to 18.09.2020 for calculation of time-line of 180 days may be excluded from the CIRP period. 5. Further, It is stated that the Operational Creditor submitted Form FA to Resolution Professional stating that he had settled his claim with Corporate Debtor pursuant to which the Resolution Professional filed an application under Section IA-1129/2021 In IB-1330(NDY2019 JC TRUE COPY 2 96 Document 3 97 12A for withdrawal which was rejected vide order dated 18.09.2020. The directo....