Judgment Summaries (NCLT) – In the matter of Adhunik Metaliks

  December 22, 2021

In the matter of Adhunik Metaliks (Cuttack Bench (10.01.2020))

 

Facts

The Liquidator of Adhunik Metaliks Ltd. (CD) filed an application under Section 60(5) of the Code read with CIRP Regulations, 2016 and Rule 11 of the NCLT Rules, 2016. Through this application, the Liquidator sought clarity on the treatment of claims received between 18 July 2018 and 7 July 2019 — when the company was supposed to be revived under the resolution plan approved on 17 July 2018. The Liquidator submitted that after the approval of the plan, the successful resolution applicant, Liberty House Group (RA), failed to implement it and one year had elapsed since, resulting in numerous costs. Accordingly, the CD’s liquidation process began on 28th August 2019. However, several claims had been received by the Liquidator, which included amounts accrued between 18 July 2018 and 7 July 2019. Therefore, the Liquidator filed the present application, seeking clarification on such claims.

Order

The Tribunal noted that Section 53 of the Code specified the distribution pattern of the assets, and the order of priority. Relying on the definitions under Sections 5(13) (Insolvency resolution process cost) and 5(16) (Liquidation cost), the Tribunal inferred that the claims received between 18th July 2018 and 7th July 2019 did not fall under the ambit of either definition, and hence could not be accorded priority over the other dues. However, the Tribunal clarified that the Liquidator was free to rely on statutory treatment of claims as laid down in Section 53. Accordingly, the application was disposed of.

 

Full text of the order accessible here.

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