TMI Blog2023 (3) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... RUCTION COMPANY LIMITED THROUGH THE DIRECTOR ORS. [ 2021 (4) TMI 613 - SUPREME COURT ] has held that on approval of the plan, it becomes binding on the corporate debtor, its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. The legislative intent behind this is to freeze all the claims so that the resolution applicant starts on a clean slate and is not flung with any surprise claims. In that judgment, it has also been held that 2019 Amendment in the Code was declaratory and clarificatory in nature and it has retrospective result. The writ petitioner is entitled to interest on the amount deposited in pursuance to the unsustainable demand letter dated 24.06.2019. Hence, considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no such transfer fee was payable. The plea of the writ petitioner was that the proceedings were initiated against the writ petitioner No.1 under Section 7 of the Insolvency and Bankruptcy Code in the National Company Law Tribunal, Kolkata. The petitioner No.2 was declared by the Committee of Creditors to be the successful resolution applicant on 14th of February, 2019 and the resolution plan submitted by the petitioner No.2 was approved by the National Company Law Tribunal, Kolkata Bench vide order dated 8th of April, 2019. The petitioner No.2 had made payment of entire amount of Rs. 266 crores in terms of the resolution plan and had proceeded to assume control of the petitioner No. 1 company along with its assets and properties. It a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t so far as FMA 152 of 2022 filed by the respondent No.1 questioning the direction of the learned Single Judge to refund the amount recovered towards transfer fee is concerned, undisputedly in the insolvency proceedings resolution plan dated 9th of May, 2019 was approved by the National Company Law Tribunal, Kolkata. The resolution plant contains the following clause: (xv) The Company and the Resolution Applicant shall be granted an exemption from all taxes, levies, fees, transfer charges, transfer premiums, and surcharges that arise from or relate to implementation of the Resolution Plan. 6. Thus, in terms of the resolution plan, the company and resolution applicant were exempted for payment of transfer charges. 7. Hon ble Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kely to take some time to reach at a decision. Thereafter vide communication dated 19th August, 2019, the writ petition had demanded the refund of the said amount mentioning the urgency which had forced the writ petitioner to deposit the amount under protest. 10. In terms of the condition contained in the approved resolution plan and also in terms of the law settled by the Hon ble Supreme Court in the matter of Ghanshyam Mishra and Sons Private Limited Through the Authorised Signatory (supra), the respondent No. 1 was not entitled to recover the transfer charges. The writ petitioners were compelled by the circumstances to deposit the transfer charges under protest. Learned Single Judge has already found that the demand by the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and Bankruptcy Code is self-contained Code. 13. In the aforesaid circumstances, we are of the view that the writ petitioner is entitled to interest on the amount deposited in pursuance to the unsustainable demand letter dated 24.06.2019. Hence, considering the prevailing rate of interest, we dispose of FMA 1262 of 2022 holding that writ petitioner is entitled to interest at the rate of 8% on the amount deposited towards the transfer charges in pursuance to the impugned demand letter from the date of deposit till the date of refund. 14. It has also been pointed out that the amount has not been refunded till now, therefore, the amount in question along with the interest as directed above be refunded to the petitioner within a period o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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