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2020 (4) TMI 677 - Tri - Insolvency and BankruptcyArbitral award - Enforcing of the Award passed by the Learned Arbitrator - section 14 (1) (a) of the I&B Code, 2016 - main crux of the submissions/contentions on behalf of the Learned IRP seems to be that by virtue of the reliefs as sought for, the Applicant is trying to enforce the Award passed by the Learned Arbitrator which cannot be done taking into consideration the provisions of section 14 (1) (a) of the I&B Code, 2016. HELD THAT:- As per clause 5 (e) (x), the payment to be effected by the Corporate Debtor to the Applicant on the date fixed as per the schedule of payments, the rights provided for clause (d) in favour of the Corporate Debtor will come into operation. So, the rights of the Corporate Debtor in relation to what has been mentioned in clause 5 (d) comes to the effect only after the payment which is required to be made by the Corporate Debtor to the Applicant. That is, the right that can be exercised in relation to the property which is subject matter to the dispute as between the parties and several agreements which has been entered into from time to time and Power of Attorney in relation to which the Award has been passed - the Corporate Debtor cannot also include in its assets any of the assets owned by the 3rd party in possession of the Corporate Debtor held under Trust or under contractual arrangements including bailment. From the reading of the above provisions as well as taking in tandem from the Award passed by the Learned Arbitrator, it is seen that even though the Corporate Debtor might have a legal right of beneficial interest in relation to the assets which according to the Ld. IRP to be treated as the stock-in-trade, but, however, subject to the conditions as imposed by the Learned Arbitrator and as against which no material has been brought forth by the IRP as to whether the same is under challenge under section 34 of the Arbitration and Conciliation Act, 1996 as amended and as to whether any stay has been granted in relation to the enforcement of the same. By virtue of reading section 14 (1) (b) restricts on the part of the Corporate Debtor in transferring or otherwise dealing with the property including its own during the period of CIR Process. No evidence has been placed by the IRP that the assets which are sought to be alienated are stock-in-trade with adequate evidence and not to be treated as an asset. In any case in relation to accounting parlance "Stock-in-Trade" is also part of Current Assets of the Corporate Debtor and cannot be divorced from it - taking into consideration the provisions of the I&B Code, 2016, in relation to the property which is the subject matter of Arbitration Award as well as in the interest of justice, a status quo order is granted and the IRP is directed not to deal with the said property.
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