TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 810
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....>[Justice Ashok Bhushan] Chairperson And [Barun Mitra] Member (Technical) For the Applicant : Mr. Gopal Jain, Sr. Advocate with Mr. Madhav Kanoria, Ms. Surubhi Khattar, Ms. Neha Shivhare, Mr. Shivansh Vishwakarma, Ms. Pallavi Agarwal, Advocates for Applicant For the Respondents : Mr. Anurut Joshi, Mr. Prakhar Tandon, Mr. Anuj Tiwari, Ms. Kaanchi Ahuja, Advocates. Mr. Bishwajit Dubey, Advocate for Interim Trade Creditors. Ms. Pooja Mahajan, Advocate for Erstwhile RP. ORDER Ashok Bhushan, J. These Applications have been filed by Bank of Baroda for clarification of judgment and order dated 22.04.2025 delivered by this Tribunal in Company Appeal (AT) (Insolvency) Nos. 983 and 984 of 2023 and other connected Appeals. IA Nos.3069 and 3070 of 2025 in Company Appeal (AT) (Insolvency) Nos. 983 and 984 of 2023 have been filed by Bank of Baroda. Other IAs as mentioned above have been filed by the Bank of Baroda in other connected Appeals decided by the same judgment of this Tribunal dated 22.04.2025. All Appeals were decided by common judgment dated 22.04.2025. It shall be sufficient to refer to pleadings in IA Nos.3069 and 3070 of 2025 as well as the reply filed in the said applicatio....
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....ked and kept in a fixed deposit account Note: The Earnest Money Deposit which was encashed and put in a fixed deposit. It was never appropriated by the CoC at the relevant time. 3. Amount towards equity infusion INR 37,99,01,370 Amount kept in an escrow current non-interest bearing account as on the date of the Judgment. Note: This is also noted in the audited financial statements that this amount was lying in an escrow current account and not in any fixed deposit. Total INR 92,99,01,370 5. The Adjudicating Authority by order dated 06.07.2023 allowed the Application and directed refund of amount to the Formation Textile LLC aggrieved by which order, Company Appeal (AT) (Insolvency) Nos. 983 and 984 of 2023 was filed by the Bank of Baroda, Company Appeal (AT) (Insolvency) Nos. 1026 & 1027 of 2023 filed by Charu Desai, Erstwhile Resolution Professional, Company Appeal (AT) (Insolvency) Nos. 1098 & 1099 of 2023, 1100 & 1101 of 2023, 1236 of 2023 & 1237 of 2023 were filed by Interim Trade Creditors who had also prayed for payment of their dues from the Corporate Debtor. Respondent No.1- Formation Textile LLC filed Company Appeal (AT) (Insolvency) Nos. 1163 of 202....
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....d that the CoC was entitled to invoke the EMD of Rs.5 Crores and PBG of Rs.50 Crores. EMD was invoked in October 2018 by the Committee of Creditors, on Formation Textile LLC not extending the EMD as per the provisions of the Process Memorandum which finding is returned in Paragraph 55 of the judgment. This Tribunal further upheld the forfeiture of PBG of Rs.50 Crore and EMD of Rs.5 Crore which findings are returned in paragraph 72. In paragraph 72 of the judgment, following has been held:- "72. Insofar as the forfeiture of PBG and earnest money, the same is fully covered by the RFRP as noted above, thus we uphold the invocation of PBG and earnest money deposit by the CoC, which is in accordance with the RFRP." 7. Counsel for the Applicant submits that in support of the Application that amount of Rs.42.99 Crores which has been mentioned in the operative part of the judgment included equity infusion of Rs.37,99,01,370/- and EMD of Rs.5 Crore. EMD having been permitted to invoke entire Rs.42.99 Crores was not entitled to be refunded and distribution to Interim Trade Creditors of Rs.20.9 Crores was to be made out of amount Rs.37,99,01,370/- and in the operative portion, this Tribuna....
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....e need to first notice the objection raised by the Counsel for the Respondent that this Application seeks review and modification of the judgment dated 22.04.2025 which is not permissible. It is well settled that this Tribunal does not have any jurisdiction to review its judgement. Application which has been filed by the Bank of Baroda has only prayed for clarification of the judgment. We, thus, do not find any substance in the submission of the Counsel for the Respondent No.1 that this Application is application for review and modification of the judgment. 13. The judgment of this Tribunal dated 22.04.2025 has returned following findings after the discussions:- (i) The amount of EMD of Rs.5 Crore and PBG of Rs.50 Crore was rightly invoked by the CoC which finding has been returned in paragraph 72 of the judgment as noted above. (ii) Formation Textile LLC who had deposited the amount towards the earnest money, PBG and equity infusion is not entitled to refund the amount of EMD and PBG and entitled to refund the amount of equity infusion which is Rs.37,99,01,370/-. The rest of the order of the Adjudicating Authority directing refund of the entire amount was set aside. 14. By j....