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2019 (6) TMI 1331 - AT - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - Corporate Debtor - Section 7 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Section 20 of the ‘I&B Code’ deals with ‘Management of operations of corporate debtor as going concern’. As per sub-section (2) therein, the ‘Interim Resolution Professional’ has the authority to raise interim finance provided that no security interest shall be created over any encumbered property of the ‘Corporate Debtor’ without the prior consent of the creditors whose debt is secured over such encumbered property. However, no prior consent of the creditor shall be required where the value of such property is not less than the amount equivalent to twice the amount of the debt. During the ‘Moratorium’ period, the ‘assignee’ also cannot deduct any amount from the assets of the ‘Corporate Debtor’. The Explanation below Section 18 does not include the assets generated from the rent paid by the ‘lessee (tenants)’. As the premises belongs to the ‘Corporate Debtor’, the ‘lessee’ pays rent in favour of the ‘Corporate Debtor’, though as per the agreement, the right of ‘LICHFL’ is only that of an ‘assignee’ which cannot recover or deduct any amount during the period of ‘Moratorium’. Application dismissed.
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