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2022 (1) TMI 773 - AT - Insolvency and BankruptcyValidity of distribution made by the Appellant as per the provision of Insolvency and Bankruptcy Code 2016 - revival of Corporate Debtor - HELD THAT:- In the present case, there is an order of attachment under ‘Prevention of Money Laundering Act’. Though the Adjudicating Authority vide its order dated 22.07.2020 has allowed the Liquidator to proceed with the sale of the assets; but the operation of the said order has been stayed by the Hon’ble Calcutta High Court vide order dated 20.11.2020 in WP No. 7962/2020 filed by the ED. In view of the same, the sale of the assets of the CD is not possible at this stage and due to legal intricacies, it is absolutely uncertain as to when the Liquidator will be able to realise the assets of the CD by disposing the same as a going concern. In these circumstances, if the impugned order passed by the Adjudicating Authority is upheld then the realisation of the dues of Financial Creditors will be postponed indefinitely which is contrary to the declared objects of Code. Even otherwise in the case of a going concern, Even the account of the borrower is regular, the dues of the Financial Creditors are repaid out of the profits made by the CD. As per Section 53(1)(b) of the Code, the Workmen’s dues for the period of 24 months preceding the liquidation commencement date and the dues owed to the Secured Creditors rank pari passu. In the present case, no workmen’s dues are outstanding and therefore, there will be no need to set apart any amount for payment towards workmen’s dues. The Adjudicating Authority in its impugned order dated 26.06.2020 has reviewed its own order dated 14.01.2020 in C.A(IB) No.1546/KB/2019 in CP (IB) No.543/KB/2017. The Adjudicating Authority (NCLT) has only power to rectify any mistake apparent from the record in accordance with Section 420 of the Companies Act, 2013 R/w Rule 154 of NCLT Rules, 2016. The Code also provides for appeals and Appellate Authority vide section 61 of the Code - the appeal is partially allowed by setting aside the impugned order of Adjudicating Authority dated 26.06.2020 as stated at clause ‘a’ of the relief sought. Application disposed off.
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