TaxTMI 
TaxTMI 
TaxTMI 
2023 (1) TMI 552
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.... of 2022 JUDGMENT Per: Justice Rakesh Kumar Jain: This appeal is directed against the order dated 12.04.2022 by which an application bearing (IB) 1896 (ND)/2019, filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (in short 'Code') & Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulation, 2016 (in short 'Regulations') read with Rule 11 of the NCLT Rules, 2016 by New Okhla Industrial Development Authority (in short 'Authority') for a direction to the Resolution Professional (RP) (Appellant) to make the payment of the amount due and payable towards the outstanding dues which have become due during the CIRP or pass any order in view of the facts and circumstances....
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....n 7 of the Code, was admitted on 10.10.2019. The Authority put up its claim of Rs. 32,96,19,803/- assessed on 10.10.2019 to the RP on 31.12.2019. It is an admitted case of the parties that the resolution plan submitted by the consortium of home buyers association, namely, Crossroad Welfare Society was submitted by the RP to the CoC which was approved in 10th CoC meeting held on 04.12.2020 by voting share 93.43%. Thereafter, the RP filed an application, in terms of Section 31 of the Code, before the Adjudicating Authority seeking its approval. The said application is stated to be pending. 4. The Authority submitted a letter dated 04.06.2021 to the RP highlighting its dues towards lease premium calculated from 11.10.2019 to 30.06.2021 of a s....
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....ontention of the Resolution Professional that the lease rent does not fall under the categories of supplies to the essential goods and services, but in terms of explanation of Section 14(1) of the IBC 2016 added w.e.f. 28.12.2019, the applicant is entitled to get lease premium amount as well as lease rent arising for the use or continuation of the lease during the moratorium period, failing which the moratorium will not apply for the suspension or termination of lease. In view of the above, as the Resolution Professional has failed to pay the lease premium and lease rent due to the NOIDA Authority, therefore, the respondent is directed to make the payment of the current amount, which is due and payable within 6 months or include the said am....
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....ere is no error in the impugned order, passed by the Adjudicating Authority. 7. We have heard Counsel for the parties and perused the record with their able assistance. 8. The only issue in this case is as to whether the Adjudicating Authority has rightly applied the explanation under Section 14(1)(d) of the Code for the purpose of directing the Appellant to pay the lease premium amount and the lease rent to the Respondent? 9. In order to apricate the rival contentions, it would be relevant to refer to Section 14 of the Code, which is as under: "Section 14: Moratorium. *14. (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for proh....
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....s or a similar grant or right during the moratorium period;] (2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. [(2A) Where the interim resolution professional or resolution professional, as the case may be, considers the supply of goods or services critical to protect and preserve the value of the corporate debtor and manage the operations of such corporate debtor as a going concern, then the supply of such goods or services shall not be terminated, suspended or interrupted during the period of moratorium, except where such corporate debtor has not paid dues arising from such supply during the moratorium period or in s....