TaxTMI 
TaxTMI 
2023 (6) TMI 69
X X X X Extracts X X X X
X X X X Extracts X X X X
....der' dated 13.11.2019, passed by the 'Adjudicating Authority' (National Company Law Tribunal, Division Bench - II, Chennai), in MA/815/2019 & MA/816/2019 in CP/552 & 553/IB/2017, the 'Financial Creditor'/ARCIL preferred this Appeal. 2. MA/816/2019 was filed by ARCIL against the 'Corporate Debtor' for Liquidation under Section 33(3) of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as 'The Code'), on the ground that the 'Resolution Applicant' has failed to pay the Resolution Plan amount fully. The 'Resolution Applicant' had subsequently filed MA/815/2019 on the ground that the entire amount was paid and that it is the duty of the Resolution Professional ('RP') to provide the 'Power Connection' to 3 units of the 'Corporat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....interest portion payable to the Financial Creditor as per the agreement subsequently entered into between the Financial Creditor and the Resolution Applicant. 5. As to interest portion is concerned, the Resolution Applicant having admittedly paid Rs.14,07,641/- to the Financial Creditor after deduction of the bill already paid and for the remaining balance of Rs.19,24,678/- the Resolution Applicant is hereby directed to pay the said balance to the Escrow Account of the Corporate Debtor within one week hereof. In view of this order, the Financial Creditor counsel having said that they would return the original Title Deeds of the Corporate Debtor immediately after receipt of the balance amount aforementioned, the Financial Creditor is als....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity' and the details of the payment to be made by the 'Resolution Applicant' is Rs.43,40,00,000/-. 6. Subsequently, on 05.10.2018, the CoC comprising of the 'Appellant' as a sole Member, vide an Agreement agreed for 'extension of time' for making payments to the 'Appellant' as detailed in the 'Resolution Applicant'. It was inter alia agreed that the outstanding dues to the KSEB to restore the 'Electricity Connection' till the date of Agreement i.e., 05.10.2018 shall be made by the first Respondent from the sum of Rs.4.34 Crs./- already remitted by the first Respondent within 48 hours of the execution of the Agreement dated 05.10.2018. 7. It is an admitted fact that on 06.10.2018, the second Respondent in terms of the Agreement dated 05.10....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... filed another Application MA 816/2019 seeking initiation of Liquidation. Subsequently, the SRA filed an Application seeking a direction to the 'Appellant' herein to release the original documents pertaining to the assets of the 'Corporate Debtor' in favour of South Indian Bank and to accept the 'full and final' payment from the same Bank towards implementation of the Plan after deducting the cost incurred by the 'Resolution Applicant' towards keeping the Company as a 'going concern'. 8. It is not in dispute that the following three tranches of payment was made by the 'Resolution Applicant' on 16.05.2019, 15.06.2019, 16.09.2019, 21.09.2019 and 04.10.2019, totaling to Rs.24,20,07,641/-. It is the case of the 'Appellant' that the SRA paid th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g the Company functioning and to avoid disconnection of electricity that the SRA has paid the amount of Rs.43,40,001/- and therefore, the 'Adjudicating Authority' was justified in setting off this amount from the interest portion payable to the 'Financial Creditor'. 11. The RP has categorically admitted that this amount which was paid towards the 'electricity bill' was not a part of the Resolution Plan and that the 'Resolution Applicant' had paid this amount of Rs.40 Lakhs for the month of October 2018, only to avoid disconnection of the 'Power Supply'. It is an admitted fact that this 'electricity bill' is for the period when the power was not consumed by the 'Resolution Applicant'. It is also not in dispute that the 'Appellant'/'Sole Fin....