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2019 (2) TMI 886 - Tri - Insolvency and BankruptcyInsolvency Resolution - RP raising interim finance - whether supplying electricity to the corporate debtor not falls within the definition of essential supplies classified in regulation 32 of IBBI [CIRP] regulations? - Expenses to be incurred on or by the resolution professional - Held that:- As u/s. 25 of the Insolvency Code,Duties of Resolution Professional are prescribed according to which Resolution Professional is required to undertake the action for raising interim finance so that the business activity of the Corporate Debtor can be restored. Any cost incurred by the Resolution Professional in running the business of the Corporate Debtor as a going concern is to be treated as “Insolvency Resolution Process Cost” (Refer Section 5(13)(c) prescribing definition of “Insolvency Resolution Process Cost”). The expenditure incurred to run the business of a Debtor Company is, therefore, to be borne by the Committee of Creditors. As far as the question of payment to be made to DGVCL is concerned, the Resolution Professional is hereby directed that electricity consumed on commencement of CIRP shall be paid as per the prescribed charges as cost of CIRP. The commencement of CIRP in this case is from the date of the Order i.e. 09.08.2018. For the old outstanding payment due as on the date of commencement of CIRP, DGVCL has an option to lodge its claim of electricity charges to the Resolution Professional as prescribed under Insolvency & Bankruptcy Code. A requisite form is required to be submitted to Resolution Professional for lodgement of claim which ought to be admitted for due consideration, either at the time of finalization of Resolution Plan or even at the time of Liquidation of Assets of the Debtor Company. The Application filed by the Electricity Company is therefore allowed in terms of the above directions. Miscellaneous Application as submitted by an employee of Oracle Home Textile Limited (Corporate Debtor) and contesting that this Application is on behalf of all the Employees and Workmen of the Corporate Debtor - Prayer of the Applicant is to give direction to Resolution Professional to consider the salary payment to all Employees and Workmen - Held that:- The Employees and the Workmen of the Debtor Company are hereby directed to fully cooperate with the Resolution Professional so that the manufacturing activity as well as other business activity of the Debtor Company should not get hampered in any manner by the conduct of the Workmen/ Employees. The members of the Committee of Creditors shall induct Funds as per their respective voting share ratio so that the business of the going concern must not get adversely affected. The Resolution Professional shall put up the details of the expenditure incurred which is to be ratified by the members of the Committee of Creditors and also to be paid accordingly.
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