Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1720 - AT - Insolvency and BankruptcyValidity of demand notice - seeking assignment and allocation of 100% of the Sale Proceeds/Oil and Gas Invoices in favour of Government - recovery of provisional sum towards the unpaid Government share of Profit Petroleum - HELD THAT:- As per procedure the amount in question has been deposited with the ‘Videocon Industries Limited (Corporate Debtor) in the light of the ‘Joint Operation Agreement’ and ‘Production Sharing Contract’ - It is true that the demand notice has no relevancy with the award and the ‘Resolution Professional’ cannot rely on the award for the purpose of deciding whether it is payable to the Union of India or not, during the ‘Corporate Insolvency Resolution Process’. The Adjudicating Authority rightly held that it was concern about the enforcement of the provision of Section 14 of the I&B Code as per which after declaration of ‘Moratorium’ prohibition is enforced from recovery of any amount from the ‘Corporate Debtor. Prohibition is also towards institution of any suit or execution of any judgment, decree or order of any court of law, Tribunal, Arbitration Panel etc. once the order of ‘Moratorium’ is passed. However, it is open to the ‘Corporate Debtor’ to recover any amount as per law and award, if any, passed in its favour - The Adjudicating Authority rightly held that the Ministry of Petroleum can lodge its claim for any legally enforceable right of recovery through ‘Resolution Professional’, thereby not rendered it remediless. ‘Chennai Petroleum Corporation Ltd.’; ‘Mangalore Refinery and Petrochemicals Limited’; ‘GAIL (India) Limited’ and ‘Bharat Petroleum Corporation Ltd.’ have been rightly restrained from remitting the amount from the sale proceeds to the Union of India, which are due to the ‘Corporate Debtor’ during the pendency of the ‘Moratorium’. Appeal dismissed.
|