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2020 (4) TMI 349 - Tri - Insolvency and BankruptcyResolution Professional us/s 60(5) r/w 14 seeking release of goods - CIRP already initiated - During the CIRP period, the Corporate Debtor had transactions with the Respondent and the payments have been made in accordance with the terms agreed upon. - It is claimed that, the Respondent has illegally held back it on account of the payments outstanding prior to the CIRP period dated 09-12-2018, in respect of which, the claim has already been filed and admitted by the Applicant herein. HELD THAT:- This Corporate Debtor is not the owner of the goods, it is evident on record that the Corporate Debtor is not the consignee, the Corporate Debtor was only engaged to provide clearance services, for which, we need not labour over the facts to say that the asset lying with the Respondent is not the asset of the Corporate Debtor - Even looking at the invoices allegedly raised by the Respondent on the Corporate Debtor dated 23-4-2019, 30-5-2019 and also other documents filed by the Applicant clearly indicate that buyer of those goods is M/s. Sundaram Fasteners whereby it cannot be inferred that the Corporate Debtor has right over the goods lying with the Respondent. For the goods not belonging to the Corporate Debtor, the Corporate Debtor, by virtue of invocation of moratorium, cannot ask for the custody of the asset showing as if the asset belongs to the Corporate Debtor. Assuming that the asset is belonging to the Corporate Debtor, even then also, by virtue of contractual arrangement which is in the nature of bailment protected not only by Contract Act but also by Customs Act cannot be said as an asset of the Corporate Debtor as stated in the explanation to section 18 of the Code. However, the Respondent counsel, adding it as a supplementary to the above point, has reiterated that the Corporate Debtor not being the consignee nor the importer of the goods it has ownership rights, it has to be construed that it has acted as an agent on behalf of the importer, therefore, this Applicant has no right to ask for release of the consignment. Application dismissed.
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