Indian Oil Corporation Limited vs Manjeet Cotton Private Limited

Indian Oil Corporation Ltd. ....Appellant Vs.

Manjeet Cotton Pvt. Ltd. & Ors. ...Respondents For Appellant: Shri Tushar Mehta, Learned Solicitor General of India with Mr. Amit Meharia, Ms. Tannishtha Singh, Advocates. For Respondents:

ORDER

(Through Virtual Mode)

05.07.2022: Heard Shri Tushar Mehta, Learned Solicitor General of

India for the Appellant.

2. This Appeal has been filed against the order dated 20.04.2022 passed

by the Adjudicating Authority (National Company Law Tribunal), Mumbai

Bench, Court-III by which the Adjudicating Authority decided the I.A 303 of

2022 filed by the Successful Resolution Applicant- 'Manjeet Cotton Private

Limited'. The Application was allowed by passing following order:-

"14. In view of the above, the Bench "Allows" IA 303/2022 with the following directions:-

(i) All claims, liquidated damages, advances etc and interest on advances up to the d ate of the Resolution Plan approved by the Adjudicating Authority stands extinguished and cannot be 2

agitated by IOCL in future as the said claim has been duly treated by the Resolution Applicant in the Resolution Plan and IOCL cannot initiate any proceedings in respect to such claims.

(ii) The Resolution Plan as approved by the Committee of Creditors ("CoC") is binding on all the parties and, therefore, the period as provided in the Resolution Plan, i.e., the period for completion of the projects under the existing contract shall stand extended for a period of 12 months from the date pf NCLT approval/ final Order for completion of pending work."

3. Learned Counsel for the Appellant submits that the Corporate Debtor

was under continuing liability under the contract to perform its obligation. It

is submitted that the order cannot be read to mean that the Corporate Debtor

now Successful Resolution Applicant is relieved from its obligation arising out

of the contract.

4. We have considered the submissions of the Learned Counsel for the

Appellant and perused the record.

5. The order passed by the Adjudicating Authority clearly mentioned that

all claims, liquidated damages, advances etc. and interest on advances up to

the date of the Resolution Plan approved by the Adjudicating Authority stands

extinguished and cannot be agitated by the Appellant in future. No exception

can be taken to the aforesaid direction because the claim was up to the date

of the approval of the Resolution Plan. In event, any future obligation arises of

Comp. App. (AT) (Ins.) No. 716 of 2022 3

the Corporate Debtor/ Successful Resolution Applicant, it is open for the

parties to take recourse in accordance with the terms and conditions and the

order impugned cannot govern any future events and consequences.

6. Subject to above clarification, we dismiss the Appeal.

[Justice Ashok Bhushan] Chairperson

[Justice M. Satyanarayana Murthy] Member (Judicial)

[Barun Mitra] Member (Technical)

Anjali/nn

Comp. App. (AT) (Ins.) No. 716 of 2022