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2022 (7) TMI 314 - AT - Insolvency and BankruptcySeeking adjustment of amount deposited in escrow account - recovery of dues of the RMGL, one of the subsidiary of the IL&FS - whether HSVP is obliged to deposit 80 % of debt due as determined by Comptroller and Auditor General of India which amount is to protect the interest of Lenders? - HELD THAT:- All the investigations and enforcement machinery has to follow to its logical conclusion but the deposit of only 80% debt due have been directed by the Hon’ble Supreme Court in RAPID METRORAIL GURGAON LIMITED ETC. VERSUS HARYANA MASS RAPID TRANSPORT CORPORATION LIMITED & ORS. [2021 (3) TMI 1180 - SUPREME COURT]. All issues between the parties has to be sort out by the Arbitration as noticed above both RMGL/RMGSL and HSVP/HMRTC have invoked the Arbitration clause in the Concession Agreement and has given notice to each other which proceeding may take its logical conclusion and the distribution of the 80% debt due is in terms of the Concession Agreement has to be subject to final resolution. The distribution of 80% of debt due deposited in the escrow account of RMGL and RMGSL has to be in accordance with the Direction of this Tribunal dated 12th March, 2020 in paragraph 64 to 66. 80% of debt due as determined by CAG is laying in the Escrow Account of RMGL and RMGSL. The interim distribution of the said amount is permitted on pro rata distribution as suggested by Union of India and approved by this Tribunal in UNION OF INDIA VERSUS INFRASTRUCTURE LEASING & FINANCIAL SERVICES LTD., SOMANY PROVIDENT FUND INSTITUTION & ORS. [2020 (3) TMI 1398 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI]. The Interim Distribution of the amount shall be amongst the Financial Creditors of both the Project No. 1 and 2. The Interim Distribution shall abide by the final resolution of ILFS Companies after following due procedure as prescribed in ‘Revised Distribution Framework’. Application disposed off.
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