Case Note & Summary
The appeal was filed by the appellant under section 61 of the Insolvency and Bankruptcy Code, 2016, challenging an order from the National Company Law Tribunal, Mumbai, which disposed of the appellant's application for payment of dues during the Corporate Insolvency Resolution Process (CIRP). The appellant, Ravi Dhiman, was the owner of licensed premises and had entered into a Leave and License Agreement with the corporate debtor, which had stopped paying dues from March and May 2023. The appellant sought payment of outstanding dues amounting to Rs. 52,16,485 for the CIRP period and ongoing dues until possession was handed over. The Resolution Professional contended that the appeal concealed material facts and that the claims should be addressed under the IBC framework. The adjudicating authority noted that the property had been handed over to the appellant and that the outstanding dues would be considered according to law. The court found no illegality in the adjudicating authority's order and dismissed the appeal, stating that the appellant's claims would be handled under the provisions of the IBC. The decision emphasized the importance of following the established legal framework for creditor claims during insolvency proceedings.
Headnote
A) Insolvency Law - CIRP Costs - Liability of Resolution Professional - Insolvency and Bankruptcy Code, 2016, Section 61 - The appellant claimed outstanding dues for the period of CIRP, asserting that the Resolution Professional was in possession of the premises. The court held that the outstanding dues would be dealt with in accordance with law, affirming the adjudicating authority's discretion in such matters (Paras 21-22).
Issue of Consideration
Whether the Resolution Professional is liable to pay the outstanding dues for the licensed premises during the Corporate Insolvency Resolution Process.
Final Decision
The appeal was dismissed as it lacked merit, with the court affirming that the outstanding dues would be dealt with in accordance with law.
Law Points
- Insolvency and Bankruptcy Code
- 2016
- CIRP costs
- possession of premises
- adjudicating authority's discretion
