TMI Blog2020 (3) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... s received during the period between July 18, 2018 till July 7, 2019 the applicant may rely on the statutory treatment of claims as laid down in section 53 of the IBC. Application disposed off. - C. A. No. 118/CTB/2019 connected with T. P. No. 44/CTB/2019 arising out of C. P. (IB) No. 373/KB/2017 - - - Dated:- 10-1-2020 - Ms. Sucharitha (R.) (Judicial Member) And Satya Ranjan Prasad (Technical Member) For the Applicant : Sumit Binani ORDER SATYA RANJAN PRASAD (TECHNICAL MEMBER) - 1. This application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 ( IBC in short) read with other applicable provisions of the IBC, the Insolvency and Bankruptcy Board of India (Insolvency Resolution Proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution plan and a period of almost one year had elapsed from the date of approval of the resolution plan and that there are various costs which have accrued during the aforesaid period when the monitoring committee was in charge of the corporate debtor, which includes costs incurred and accrued for salary of workmen/employee, admin costs, unpaid costs to security personnel and other professional fees of auditors, etc., although the plant and business operations was shut from May, 2018. 5. The applicant further submits that such costs were accrued in view of the hope of the revival of the corporate debtor as a going concern but the successful resolution applicant allegedly failed to implement the resolution plan which was binding on it and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. Details of such costs have also been provided as annexure A to the application. 10. The present application is for clarification in regard to treatment of aforesaid claims of work men and employees and such other claims which have accrued during the non-implementation period and that whether the same should have priority over other dues. 11. In this regard, it has been noted that the distribution pattern of the assets and the order of priority have been specified under section 53 of the IBC. Further, the insolvency resolution process costs and liquidation costs have been defined in the following manner : Under sub-section (13) of section 5 of the IBC, insolvency resolution process costs mean- (a) The amount of any inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... twelve months or for the period from the liquidation commencement date till repay ment of interim finance, whichever is lower ; (vii) the amount repayable to contributories under sub-regulation (3) of regulation 2A ; (viii) any other cost incurred by the liquidator which is essential for completing the liquidation process : Provided that the cost, if any, incurred by the liquidator in relation to compromise or arrangement under section 230 of the Companies Act, 2014 (18 of 2013), if any, shall not form part of liquidation cost. Further, regulation 7(1) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 states that- A liquidator may appoint professionals to assist him in the discharge of his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date ; (d) financial debts owed to unsecured creditors ; (e) the following dues shall rank equally between and among the following :- (i) any amount due to the Central Government and the State Government including the amount to be received on account of the Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the liquidation commencement date ; (ii) debts owed to a secured creditor for any amount unpaid fol lowing the enforcement of security interests ; (f) any remaining debts and dues ; (g) Preference shareholders, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
