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2022 (11) TMI 984 - AT - Insolvency and BankruptcyDifficulty in functioning of Corporate Debtor - Consequence and effect of the Order dated 07.11.2022 - whether the Corporate Debtor is entitled to be restored and be permitted to function as it was functioning prior to 28.10.2022? - HELD THAT:- The issue is no longer res integra. Hon’ble Supreme Court has occasion to consider the effect and consequence of an Interim Order passed by a Court in Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association [1992 (4) TMI 183 - SUPREME COURT] where it was held that While considering the effect of an interim order staying the operation of the order under challenge, a distinction has to be made between quashing of an order and stay of operation of an order Quashing of an order result in the restoration of the position as it stood on the date of the passing of the order which has been quashed. The stay of operation of an order does not, however, lead to such a result. It only means that the order which has been stayed would not be operative from the date of the passing of the stay order and it does not mean that the said order has been wiped out from existence. This means that if an order passed by the Appellate Authority is quashed and the matter is remanded, the result would be that the appeal which had been disposed of by the said order of the Appellate Authority would be restored and it can be said to be pending before the Appellate Authority after the quashing of the order of the Appellate Authority. The question which needs to be considered in this Application is that how the day-to-day functioning of the Tea Gardens may be carried on when IRP is not entitled to discharge any function and the Corporate Debtor also cannot be restored as it was functioning prior to 28.10.2022. There are wages to be paid to the workers, Ration is also to be distributed by the Company to its workers, there are electricity dues and some other necessary expenses. The workers of the Corporate Debtor and its functioning can not be made to suffer in the facts of the present case - for the purposes of payment of wages to the workers and distribution of ration, payment of electricity dues and other necessary expenses, ways and means have to be found out so that Corporate Debtor may continue as a going concern - In the facts of the present case, we are of the view that difficulties in running the corporate debtor as a going concern, can be mitigated by directing the Chief Executive Officer (CEO)/Officers of the Corporate Debtor authorized to operate the Bank Accounts are permitted to make payment of wages of workers, workmen and employees as was being paid earlier to passing of the order dated 28.10.2022. The payment of Electricity Dues and other necessary expenses may also be carried out by the officials as mentioned above subject to submitting all details of expenditure on weekly basis to the IRP as well as to the Suspended Managing Director of the Corporate Debtor. Application allowed.
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