Topworth Urja & Metals Limited vs Directorate Of Industries Government ...

In the matter of: Topworth Urja & Metals Ltd., ....Appellant Through Its RP Avil Menezes Vs. Directorate of Industries, Govt. of Maharashtra ...Respondent For Appellant Mr. Abhijeet Sinha, Sr. Advocate with Mr. J Rajesh, Mr. Dhrupad Vaghani, Md. Arsalan Ahmed, Mr. Jaitegan Singh Khuranna, Advocates. For Respondent Mr. Arpan Behl, Mr. Akash Sharma, Advocates for R2.

ORDER

(Hybrid Mode)

04.09.2024: Heard Counsel for the Appellant. No one appeared for the

Respondent despite service of notice.

2. This Appeal has been field against the order dated 07.03.2024 passed

by the Adjudicating Authority (National Company Law Tribunal), Court No.1,

Mumbai Bench in IA No. 5560 of 2023. The IA was filed by the Resolution

Professional of the Corporate Debtor seeking direction for release of payment

of an amount of Rs.61,76,53,000/- sanctioned as Industrial Promotion

Subsidy claim for the mega project of the Corporate Debtor. The CIRP against

the Corporate Debtor commenced on 12.08.2022. The Application came for

consideration before the Adjudicating Authority. Adjudicating Authority has

issued notices to the Respondents in the application but no one appeared

before the Adjudicating Authority nor any reply was filed. Adjudicating 2

Authority in paragraph 5.1 has noted the sanction of the Investment

Promotion Subsidy for the year 2017-18, 2018-19 and 2019-20. In paragraph

5.2, the Adjudicating Authority has noticed a letter dated 28.02.2022 written

by the earlier management of the Corporate Debtor to the Minister of Ministry

of Finance and Planning of Maharashtra for release of the amount to the

Government Authorities as mentioned therein. The Adjudicating Authority

after referring to the aforesaid letter has directed the Principal Secretary,

Directorate of Industries, Government of Maharashtra to pay the amount

within 30 days to those Government Authorities as stated in paragraph 5.2.

The Appellant aggrieved by the impugned order has come up in this Appeal.

3. Shri Abhijeet Sinha, Learned Senior Counsel for the Appellant submits

that the letter relied by the Adjudicating Authority is written by erstwhile

management and after initiation of the CIRP, all amount has to be paid to the

Corporate Debtor and the claims of all authorities have to be satisfied as per

the Resolution Plan which has already been approved by the CoC and all

Government Authorities have already filed their claims.

4. We have considered the submissions of the Appellant and perused the

record.

5. Paragraphs 5.1 and 5.2 which is relevant for the present case are as

follows:-

"5.1. The Respondent had neither filed the reply nor entered

appearance despite service of Court Notice on 20.12.2023. The

I.A. No. 5390 of 2024 IN Comp. App. (AT) (Ins) No. 662 of 2024 3

Respondents has sanctioned the Investment Promotion Subsidy for

the year 2017-18, 2018-19 and 2019-20 as follows:

Sr. IPS Period Date of Amount Sanctioned (In No. Sanction Rs. Lakh)

1. 01/07/2017 27/12/2021 1525.01 (90%) to 31/03/2018

2. 01/04/2018 27/12/2021 2417.12 (75%) to 31/03/2019

3. 01/04/2019 27/12/2021 2234.40 (75%) to 31/03/2020

Total 6176.53

5.2. Further, an approval for disbursement of 75% the above-

mentioned subsidy was accorded vide letter dated 11.02.2022

issue in respect of 2018-19 and 2019-20 and 90% in respect of

financial year 2017-18. The Corporate Debtor vide letter dated

28.02.2022 asked the Minister of Ministry of Finance and Planning

of Maharashtra for intervention for release of Rs.6176.53 Crores

and also inform that the amount so released be paid on behalf of the

Corporate Debtor to the following Govt. Authorities:

Sr. No. Department Outstanding Amount (in Rs.)

1 District Mining Officer, 32,92,89,227 Yavatmal

I.A. No. 5390 of 2024 IN Comp. App. (AT) (Ins) No. 662 of 2024 4

2 G.S.T. Department 22,00,00,000

3 Sales Tax (TIN 3,23,86,165 No.27580279959)

4 Provident Fund Department 1,60,69,127

5 TDS Department (TAN 1,99,08,481 No.NGPS01005E)

6 District Mining Officer, 7,04,05,417 Yavatmal

Total 61,76,53,000

6. The CIRP against the Corporate Debtor commenced on 12.08.2022 and

the letter dated 28.02.2022 which was relied in paragraph 5.2 was written by

the erstwhile management. After the CIRP having commenced, all amount

which is payable to the Corporate Debtor has to be given in the kitty of the

Corporate Debtor and disbursement of the amount has to take place as per

the Resolution Plan which has been approved by the CoC as submitted by the

Counsel for the Appellant.

7. In view of the aforesaid, we partly allowed the Appeal and direction

contained in paragraph 5.3 to the Principal Secretary, Directorate of

Industries, Government of Maharashtra, to pay the amount of investment

subsidy within 30 days in accordance with the disbursal advice to the

Government Authorities as mentioned in paragraph 5.2 is set aside. Let the

amount which has not yet been paid to the Corporate Debtor be paid to the

Corporate Debtor within time as allowed by the Adjudicating Authority. It will

I.A. No. 5390 of 2024 IN Comp. App. (AT) (Ins) No. 662 of 2024 5

be open for the Resolution Professional to take such further steps as may be

required in accordance with law.

8. Appeal is disposed of.

[Justice Ashok Bhushan] Chairperson

[Arun Baroka] Member (Technical) Anjali/nn

I.A. No. 5390 of 2024 IN Comp. App. (AT) (Ins) No. 662 of 2024