Claim of operational debt can’t be fastened on successful resolution applicant after approval of resolution plan
- News|Blog|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 21 September, 2021
Latest from Taxmann
Case Details: Shree Siddhivinayak Cotspin (P.) Ltd. v. Sujata Chattopadhyay - [2021] 130 taxmann.com 146 (NCLT - Mum.)
Judiciary and Counsel Details
-
- Janab Mohammed Ajmal, Judicial Member and V. Nallasenapathy, Technical Member
- Mustafa Doctor, Sr. Adv., Amir Arsiwala and Shriraj Khambete, Advs. for the Applicant. Ms. Anamika, Adv., Rohit Gupta, Adv. Nirav Parmar, Shreedharan, Gopal Machiraju, Ms. Khushbu Marwadi and Ms. Alefiya Mandviwala, Advs. for the Respondent.
Facts of the case
In this given case, Respondent is the Maharashtra Industrial Development Corporation (M.I.D.C) against whom reliefs are sought. The Respondent allotted plots in favor of corporate debtor vide. agreement of lease. The Respondent had also given consent to mortgage leased properties in favor of the financial creditor of the corporate debtor.
However, the corporate debtor failed to repay the bank loan, possession of the plot was taken over by the creditor bank. Thereafter, Corporate Insolvency Resolution Process (CIRP) application was admitted against the corporate debtor.
The Resolution plan was submitted by the applicant and the same was approved by Adjudicating Authority. The Respondent’s claim of Rs. 2.92 crore as the operational debt was paid and settled for Rs. 2.67 lakh in the said resolution plan.
NCLT Held
Thereafter, the Applicant requested Respondent to issue ‘No Due Certificate’ and ‘No Objection Certificate’ for the creation of security interest over factory premises of corporate debtor.
In reply, the Respondent issued a letter to the applicant claiming a total due of Rs. 3.50 crores, without giving any details thereof. The Applicant submitted that since Respondent had not issued NOC to mortgage leased land, the applicant was not in a position to avail loan sanctioned by the bank.
The Respondent should have claimed said amount before Resolution Professional as an operational creditor and since no claim was made at an appropriate stage, the same could not be fastened to an applicant after approval of resolution plan.
Since the respondent was the owner of the property, it was purely within its prerogative to decide on the issue of NOC or not. As a result, the instant Tribunal had no jurisdiction to grant such relief.
List of cases referred to
-
- UP Street Industrial Development Corpn. v. Monsanta Manufacturers (P.) Ltd. [2015] 12 SCC 501 (para 13)
- Aurangabad Carbon Producers (P.) Ltd. v. State of Maharashtra [WP No. 8499 of 2014, dated 6-7-2015] (para 13)
- Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta [2019] 111 taxmann.com 234 (para 30)
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
