M/S Baroda Freight Carrier Through Its ... vs Resolution Professional Of M/S Sintex ...
- CitationCompany Appeal (AT) (Insolvency) No. 1451 of 2022
Ratio decidendi
The rule this decision rests on
Where a claim is pleaded as relating to services rendered to the corporate debtor during the insolvency resolution process period, the mere characterisation of the claim as an operational debt by the Resolution Professional or the Adjudicating Authority does not, without consideration of the application on its merits, justify its rejection; an application so pleaded must be decided on its merits, and an order rejecting it on the ground that the claim is operational debt, without such consideration, is unsustainable and liable to be set aside and remitted.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Insolvency) No. 1451 of 2022 IN THE MATTER OF: Baroda Freight Carrier Through its Authorised Representative Anjul Mangla ...Appellant Versus Ketulbhai Ramubhai Patel Resolution Professional of M/s Sintex BAPL Ltd. ...Respondent Present: For Appellant : Mr. Sanjeev Panda, Mr. Sumit Shukla, Advocates For Respondent : None.
ORDER
21.02.2023: Heard Learned Counsel for the Appellant.
This appeal has been filed against the order of the Adjudicating
Authority dated 11.10.2022 by which IA/64(AHM)2022 filed by the Appellant
has been rejected.
3. The Appellant filed the IA/64(AHM)2022 claiming the amount with
regard to transportation services provided to the Corporate Debtor for the
period January, 2021 to 28.06.2021. The CIRP against the Corporate Debtor
commenced on 18.12.2020. The Adjudicating Authority has rejected the
application were noticing the submission of the Respondent that amount of
the operational debt and cannot be treated as CIRP cost.
4. We have heard the Learned Counsel for the Appellant and perused the
record.
5. Inspite of notice having been issued and served to the Respondent, no-
one has appeared for the Respondent.
6. Learned Counsel for the Appellant submits that in the application filed
by the Appellant, it has been clearly mentioned that transportation services Company Appeal (AT) (Insolvency) No. 1451 of 2022 1 provided to the Corporate Debtor from the period January, 2021 to
28.06.2021 which has been specifically pleaded and the amount has been
claimed for the aforesaid. In the prayer made in the application, following
prayer has been made by the Appellant:-
"The applicant hereby pray before this
Hon'ble Adjudicating Authority that it may
graciously be pleased to:
i. Take the present application on
record and issue notice to the respondent(s);
and/or;
ii. To take note of the fact that the
Respondent has not complied with the
directions of the orders passed by this
Hon'ble Tribunal on 29th June 2021.
iii. Take note of the conduct of the
Respondent no. 1 who has acted against the
provisions of IBC, 2016 and CIRP Regulations
and pass necessary order(s)/direction(s)
against the respondent no. 1 including
directing the respondent no. 1 to take steps to
make the payment of unpaid CIRP cost
2017140/- (Rupees Twenty Lakhs Seventeen
Thousand One Hundred and Forty only) along
with interest towards transportation services
provided by the applicant to the corporate Company Appeal (AT) (Insolvency) No. 1451 of 2022 2 debtor during the CIRP period as mentioned in
the present application and/or
iv. Pass any such further
order(s)direction(s) which may be deemed fit
in the interest of justice.
It is prayed accordingly."
7. The Adjudicating Authority in its order while rejecting the application,
has made following observations:-
"This application is filed by Baroda Freight
Carrier, one of the Operational Creditors of the Corporate
Debtor to treat sum of Rs. 2,17,140/- as the CIRP cost.
In fact, CIRP of the Corporate Debtor is continued. Order
of withdrawal dated 29.06.2021 has been stayed by the
Hon'ble NCLAT and stay is still continued. None
appeared for the Operational Creditor.
Learned Counsel for the Respondent pointed out that
how the amount claimed could be CIRP cost. The amount
as claimed appeared to be the operational debt and
hence cannot be treated as CIRP at this stage.
In view of the above, this application is not
maintainable and stands disposed of."
8. When the Appellant in its application has clearly mentioned that the
amount is being claimed for service provided from January, 2021 to June,
2021, there could not be any question of it being operational debt and
Adjudicating Authority ought to have been considered the application on Company Appeal (AT) (Insolvency) No. 1451 of 2022 3 merit and the reasons given by Adjudicating Authority for rejecting the
application are unsustainable. In result, the Appeal is allowed. The
impugned order dated 11.10.2022 is set aside and the IA/64(AHM)2022 is
revived before the Adjudicating Authority to be decided in accordance with
law.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
ss/nn
Company Appeal (AT) (Insolvency) No. 1451 of 2022 4
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