The Bangalore NCLT held that claim against additional cost, interest imposed by commercial court post CIRP commencement cannot be admitted by the RP in a CIRP during moratorium period.
The applicant had filed a recovery suit in Commercial OS 154/2020 before the City Civil and Sessions Judge at Bengaluru against the Corporate Debtor for recovery of money of Rs. 34,71,638/- along with interest at 9% per annum until entire amount is paid by the Company to the Applicant. The Court vide Judgment and decree dated 22.04.2021 allowed the suit to be filed by the Applicant.
However, the Resolution Professional after reconciling the claim made by the Applicant, admitted the claim provisionally as Operational Debt for amount of Rs. 30,42,927/-only as against the claim of Rs. 31,41,753/- which includes TDS of Rs. 91,091/-. It is submitted that the Resolution Professional failed to look into the interest and other costs amounting to Rs. 10,94,464/- relating to the order passed by the Hon’ble City Civil and Sessions Court.
The Resolution Professional filed it statement of objection submitting that the claim amount submitted by the Applicant was filed relying on the order passed by the Hon’ble Commercial Court in Comm OS 154/2020. The Commercial Court passed the order on 22.04.2021. The CIRP against the Corporate Debtor had commenced on 16.07.2021 and there was a moratorium imposed by this Tribunal against all suits and proceedings pending against the Corporate Debtor.
Therefore, it is stated that the Commercial Court could not have passed such an order asking the Corporate Debtor to pay interest, cost of the suit, execution cost and advocate fee when there was a moratorium subsisting against the Corporate Debtor. Considering that the order was passed by the Commercial Court during the moratorium, the respondent did not consider the interest, cost of the suit, execution cost and advocate fees over and above the principal amount of debt. Further, as per the records of the Corporate Debtor, the total outstanding dues towards the Applicant was Rs. 30,42,927 till the date
The tribunal held that additional cost imposed by the Commercial Court is against the moratorium imposed by this Tribunal. Hence, it is concluded that the Resolution Professional has not erred in admitting the only Rs. 30,42,927/- which is the amount outstanding till the date of commencement of the CIRP.
SourcePro Service V/s Mr. Vinay Mruthyunjaya