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2020 (8) TMI 544 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHIClaim of damages and compensation - CIRP process - Appellant comes out with a plea that since the Company had failed to perform its obligations as per Agreement, the Appellant was perforced to initiate ‘Arbitration proceedings’ against the company - HELD THAT:- The very observations of the Adjudicating Authority in the impugned order that the ‘Liquidator’ had not given reasons in detail but that does not mean that reasons are not given etc., will go to show that the same is not a valid and correct one. In this regard, as per Section 40 of the Code a ‘Liquidator’ being an ‘Authority’ decides the matter in a quasi-judicial manner and his decision is open to challenge u/s 42 of the I&B Code. An unreasoned order may be just and valid from the point of view of an authority who passes the same. But to the affected, the said order is not a ‘valid one’. A ‘Reasoned order’ will have an appearance of ‘Justice’. A decision by judicial or quasi-judicial Authority not informed of reasons provides room for arbitrariness and such decision cannot be supported. In terms of the ingredients of Section 40 of the ‘I&B’ Code, reasons are to be spelt out for rejecting the claims, which in the present case was not followed by the ‘Liquidator’. An ‘Adjudicating Authority’ can interfere when a ‘Liquidator’ had not exercised its discretion in a bonafide manner or he had proposed a thing which no reasonable person would act. A ‘Liquidator’ as an Officer of the ‘Adjudicating Authority’/ Tribunal is expected to perform his duties fairly, justly and honorably in dealing with the claims of persons. It cannot be forgotten that ‘Interest’ due on damages sought for violation of contract gives rise to a legal right to claim payment. It also qualifies as an ‘actionable claim’. Apart from that, considering the fact that the Appellant stakes a claim for interest which can be awarded on equitable grounds and further it had submitted a surveyor’s report along with the claim and the said report is based on bills provided by the Appellant and there being rejection of these claims, this Tribunal without any haziness holds that the impugned order of the Adjudicating Authority is liable to be set aside. Appeal allowed.
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