Case Law Details
Athena Demwe Power Ltd. Vs Abir Infrastructure Private Limited (NCLAT Delhi)
Held that the mobilization advance given by the Appellant to the Corporate Debtor is clearly an Operational Debt and the Adjudicating Authority committed error in rejecting the claim of the Appellant as an Operational Debt.
Facts-
Appellant awarded a contract to the Corporate Debtor. Accordingly, a mobilization advance of Rs. 7,48,40,06,136/- was transferred by the Appellant to the Corporate Debtor through the Bank Transfer. Corporate Debtor had issued Corporate Guarantee in favour of the Appellant, which was extended till 23.11.2021. However, the Contract work could not be completed since site was never made available by the owner.
NCLT (Adjudicating Authority) had initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and the Appellant had filed its claim before the Interim Resolution Professional (IRP) for an amount of Rs. 1784,99,28,651/- as a Financial Creditor. IRP informed the Appellant that his claim falls does not fall as a Financial Creditor rather it falls as an Operational Creditor. The Appellant filed his claim as an Operational Creditor. IRP informed that the claim doesn’t fall under the category of Operational Creditor. The appellant filed his claim under other creditor head. Meanwhile, the Adjudicating Authority vide an order dated 28.10.2021 had approved the Resolution Plan submitted by SREI Multiple Asset Investment Trust i.e. Respondent No. 2 for the Corporate Debtor.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
