TMI Blog2020 (8) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... ness and such decision cannot be supported. In terms of the ingredients of Section 40 of the I B Code, reasons are to be spelt out for rejecting the claims, which in the present case was not followed by the Liquidator . An Adjudicating Authority can interfere when a Liquidator had not exercised its discretion in a bonafide manner or he had proposed a thing which no reasonable person would act. A Liquidator as an Officer of the Adjudicating Authority / Tribunal is expected to perform his duties fairly, justly and honorably in dealing with the claims of persons. It cannot be forgotten that Interest due on damages sought for violation of contract gives rise to a legal right to claim payment. It also qualifies as an actionable claim . Apart from that, considering the fact that the Appellant stakes a claim for interest which can be awarded on equitable grounds and further it had submitted a surveyor s report along with the claim and the said report is based on bills provided by the Appellant and there being rejection of these claims, this Tribunal without any haziness holds that the impugned order of the Adjudicating Authority is liable to be set aside. Appeal allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uidator has not clearly mentioned in many words as to why he has rejected those two claims, with regard to the component of investment made in storage facility, he has mentioned that it is not admissible based on the information available, as to interest portion, it has been categorically mentioned that since there is no binding agreement between the parties obligating the Corporate Debtor company to pay interest, we believe that reason is more than sufficient for rejecting the interest component. and finally dismissed the Miscellaneous Application. 3. The Learned counsel for the Appellant contends that the present appeal is filed against the impugned order passed by the Adjudicating Authority in two claims without ascribing any reasons as contemplated under Section 40 of the I B Code. 2. It is the stand of the Appellant/Applicant that it entered into an agreement dated 08.02.2010 with SBQ Steels Limited (Company) towards supply of furnace oil for a period of 15 years and that the Company had agreed to procure a minimum quantity 10,00- MT of furnace oil per annum from the 2nd years onwards till 6th year from the date of upliftment failing which the Company had agreed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant takes a plea that a Liquidator/quasi-Judicial Authority is bound to pass a reasoned order, because of the fact when the value of claims admitted under Section 40 of the Code, the Determination is a decision being arrived at, which in turn can be a subject matter of Appeal before an Adjudicating Authority in terms of Section 42 of the I B Code. 9. The Learned counsel for the Appellant points out that Section 3(6)(a) of the Code deals with claim meaning a right to payment, whether or not such right is reduced to Judgment, Fixed, Disputed, undisputed, Legal, equitable, secured or unsecured and relies upon the decision of Hon ble Supreme Court Sovintorg (India) V. State Bank of India AIR 1999 SC 2963 wherein it is held that interest can also be awarded on equitable grounds . 10. The Learned counsel for the Appellant refers to the order passed by the Adjudicating Authority (NCLT), Mumbai in MA 550 of 2018 in CP1696/I BC/MB/MAH/2017 IDFC Bank Ltd. Vs. Monnet Power Company Limited wherein it is observed as under: It is also not in dispute that the Claimant i.e. BHEL itself is under obligation to pay the interest to the Financial Institutions from whom t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a tenable one. 14. While winding up, the Learned counsel for Respondent points out that at best the claim can be remitted to the Liquidator to assign/reiterate the reasons for such rejection. Also, that the claim of the Appellant during CIRP was rejected and a detailed meeting took place between the Appellant and the Resolution Professional s team on 19.06.2018 and in reality, the reasons for rejection of their claim were also discussed during the said meeting. 15. At the outset it is to be pointed out that the Liquidator of SBQ Steels Ltd. in his e-mail sent on 23.4.2019 addressed to Virender Rao JM, Subbiah, E, Raunaq Arvind, Bagade; Sathish Babu U.N; Rao, Lakshmana on the subject of SBQ / Liquidation/ intimation of rejection of claims had stated the following:- Dear Sir/Madam Ref: Claim submitted in Form C dated 12.3.2019 in relation to Indian Oil Corporation Limited We wish to inform you that an amount of ₹ 9,88,00,000/- has been admitted. See below the table for detailed breakdown: Description of claim Claim Amount Admitted Amount Remark Outsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving any reasons in detail could not be a ground for invalidating the claim already considered and rejected by Liquidator . 18. It is to be borne in mind that in the erstwhile Insolvency period where the claim of creditor arose from the contract which provided interest, the interest could be claimed only upto the date of winding up of the order as per decision Esmail Esoof Moolla v. Chartered Bank, (1931) 1 Comp Cas 235 . 19. It is to be pointed out that as per Section 40 of the I B Code, the Liquidator is to determine the claims admitted under this section in such manner as may be prescribed by the Insolvency Bankruptcy Board of India. Not assigning reasons and that too in a rejection order relating to a claim is not a prudent and reasonable course of action , as opined by this Tribunal. 20. On a careful consideration of respective contentions, on going through the impugned order of the Adjudicating Authority and keeping in mind of the contents of the e-mail table sent on 23.04.2019, this Tribunal comes to a resultant conclusion that the Liquidator had not assigned detailed reasoning in respect of the non-admissibility of the claim relating to investment made i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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