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2020 (8) TMI 425 - AT - Insolvency and BankruptcyStay of termination notice - Facilities agreement - conduct of examinations deploying National Technology Infrastructure for the Appellant’s clients - It is submitted that the ‘Corporate Debtor’ failed to remedy contractual breaches, thereby, a notice of termination dated 10th June, 2019 issued by the Appellant in terms of Clause 11(b) of the Facilities Agreement. Whether the order passed by the Adjudicating Authority staying the termination notice is legal or not? HELD THAT:- The Respondent herein was appointed as Interim Resolution Professional (in short IRP) to carry out the functions as per law. In view of Section 14 once a moratorium was imposed by the Adjudicating Authority and on appointment of Interim Resolution Professional the Interim Resolution Professional will be at the helm of affairs of the company in view of the suspension of the Board of Directors of the ‘Corporate Debtor’. As on the date of the imposition of moratorium the business and activities of the ‘Corporate Debtor’ will have to be carried out for smooth functioning of the company and the company shall remain as a going concern. Apart from that the Resolution Professional shall ensure for smooth running of the company as a going concern and the Resolution Professional shall perform the duties as per Section 25 of the I&B Code. Sub- Section (2)(a) of Section 25, the Resolution Professional take immediate custody and control of all the assets of the Corporate Debtor, including the business records of the Corporate Debtor - Further, the said provision sets out the duty of Resolution Professional to preserve and protect the assets of the ‘Corporate Debtor’ and lays down the functions he may perform the same. In view of the duties cast upon the Resolution Professional, the Resolution Professional to keep the Corporate Debtor as a going concern and filed an application being C.A. (M.B.)- 2954 of 2019 before the Adjudicating Authority seeking stay of termination of notice and sought direction to the Appellant to continue the Facilities Agreement dated 01.12.2016 - The Adjudicating Authority after hearing the parties stayed the termination of notice and directed the Appellant herein to adhere to the terms of contract without fail. Appeal dismissed.
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