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2020 (5) TMI 226 - AT - Insolvency and BankruptcyCIRP process - release of managerial remuneration/salary arrears - Appellant claims that his Application was considered by the Adjudicating Authority but the Adjudicating Authority wrongly rejected the same - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- It is matter of record that COC dealt with the claim of the Appellant in meeting dated 26.04.2018 as well as 07.08.2018 but did not support the Appellant with regard to his claim for salary in excess of what is permissible under Section 197 of the Companies Act. The Appellant appears to have been aware that he was drawing excess salary which was being picked up on the basis that approval of Central Government was awaited and on two occasions, admittedly the excess drawn was returned - Being in managerial position, this may have happened in the Company (which is now stated to have gone in liquidation) because of being related party. The Appellant was related party as reflected from the minutes of COC meeting dated 26.04.2018 (Annexure - A of Reply) in Item No.9. The COC which includes the lead and other lenders did not approve and there is nothing to show that Central Government permitted payment of excess remuneration and when this is so, there appears to be no reason to find fault with the Impugned Order and we do not find any reason to interfere. There are no substance in the argument that it was responsibility of this Resolution Professional to move the Government for necessary permission. When the claim is submitted in Form – D, the amount claimed must have support from record to spell out dues payable and the Applicant cannot expect the Resolution Professional and COC to go and get the necessary permissions. There is no substance in the Appeal. Appeal dismissed.
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