NCLAT allows Refund as the Amount Deposited in Pursuance of Liquidation Order [Read Order]
NCLT – Refund – amount deposited – pursuance of Liquidation order – Liquidation order – taxscan
NCLT – Refund – amount deposited – pursuance of Liquidation order – Liquidation order – taxscan
The Principal Bench of the National Company Law Appellate Tribunal(NCLAT) allowed the refund of the amount deposited based on the liquidation order.
Amit Ahirrao, the appellant who is the Promoter of the Corporate Debtor challenged the order dated 10.05.2022 passed by the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench filed by the Resolution Professional seeking liquidation of M/s Virtue Infra and Entertainment Private Limited been allowed and the Adjudicating Authority has directed for liquidation of the Corporate Debtor.
The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on an application filed by Respondent No.2, the Financial Creditor under Section 7 by order dated 29.09.2021. The appellant filed an appeal challenging the order admitting CIRP which appeal being Company Appeal (AT) (Ins.) No. 970 of 2021 was dismissed by the Tribunal.
The Committee of Creditors passed a resolution and Form G was issued by the Resolution Professional, however, no resolution plan could be submitted in the process. The Committee of Creditors in its 7th meeting held on 10.03.2022 with a 100% vote resolved to liquidate the Corporate Debtor, in pursuance of which the Resolution Professional filed an I.A. which was allowed by the impugned order.
The Appellant stated that the Appellant is ready to make the entire payment to the Financial Creditor by way of a Bank Draft. On 11.10.2022, the Appellant also made a statement that the appellant shall be making a payment with interest @ 9%.
It was submitted that the amount of Rs. 1,09,00,000/- has already been deposited on Wednesday in the Registry and also showed a willingness to deposit the interest amount at the rate of 09 % as was earlier noticed in the Order dated 11.10.2022.
The two-member bench comprising Justice Ashok Bhushan, Chairperson and Barun Mitra, Member (Technical) observed that the Appellant had deposited the amount due to the Financial Creditors but the Financial Creditors having submitted that the amount deposited is not along with up-to-date interest, we are of the view that the amount deposited by the Appellant in this appeal in pursuance of the orders passed, deserve to be refunded to the Appellant.
The Board upheld the liquidation order and directed to refund the amount deposited by the Appellant in pursuance of orders passed in the appeal.
To Read the full text of the Order CLICK HERE
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