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Judgment
ORDER
07.03.2024: Heard Learned Counsel for the Appellant and Learned Counsel for the Respondents.
This Appeal has been against the order dated 15.02.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Court-V, Mumbai Bench in IA No.529 of 2024 filed by the Bank of Baroda by which order the Adjudicating Authority has issued following directions in paragraphs 15, 16 and 17:-
“15.After having heard the Ld. Counsels for the parties and having perused the documents placed on record, we are of the considered opinion that the matter requires further consideration with respect to the exorbitantly high interest and charges admitted in the case of Respondent Nos. 2 to 8 by Respondent No. 1/RP. Particularly when the Transaction Audit Report clearly mentions the rate of interest in case of YBL @ 14.40%. At the moment we confine ourselves only to the consideration of grant of interim relief. On the one hand, we are conscious of the governing principles for grant of interim relief i.e. a) Prima facie case in favour of the party seeking the interim relief, b) the balance of convenience and c) the irreparable loss being caused to the party. On the other hand, we have to keep in mind the timelines of the BC because of which interim relief of stay/restraint are not the norm. Now applying the principles of grant of ad-interim relief to the facts of the present case/case of the applicant, it is pertinent to note that the Applicant is a public sector bank which has agitated the issue in the month of April, 2023 and it is in the response of RP dated 01.05.2023 that the admitted interest rate of each of the financial creditors finds mention. In addition, the contention of the Respondent No.1/RP stating that the instant matter of 'interest and charges' falls within the ambit of COC is not legally tenable. It is pertinent to note that the COC has no role under the IBC and the Regulations regarding admission of claim/interest. The RP cannot be allowed to abdicate its responsibility of verifying the claims submitted by the parties before admitting the same.
16.Thus, we therefore deem it appropriate to intervene and grant the interim relief of restraining the COC from considering and approving the resolution plans during the pendency of the present I.A.
17.We are of the considered opinion that restraining the COC from further considering the resolution plans during the pendency of the present LA. will not cause any irreparable loss or prejudice to the interest of the respondents but not granting the said relief is bound to cause prejudice to the interest of the applicant, as the voting rights of the applicant have been adversely affected. Thus, prayer (c) of the I.A. is allowed and the respondents are restrained from voting upon the resolution plans till the disposal of the present I.A.”
Learned Counsel for the Respondent contends that the observations made by the Adjudicating Authority that interest was exorbitantly charged was incorrect and all calculations are in accordance with the relevant documents.
Learned Counsel for the Resolution Professional also supports the calculation of the interest and the admission of the claim by the Resolution Professional.
The Adjudicating Authority in the impugned order having noticed certain instances and decided that with regard to claim charging of the interest should be examined and adjudicated, we see no error in the order of the Adjudicating Authority when direction has been passed to examine the interest charge in the claims. Till the issues are finalized, the Adjudicating Authority to balance the interest of the parties has directed that no further steps shall be taken for consideration and approval of the Resolution Plan.
It is further to be noticed that the next date fixed is 12.03.2024 and in the interest of all concerned, Adjudicating Authority may take a decision on the application and thereafter further steps may proceed in accordance with the law. We make it clear that we have not expressed any opinion on the issue which is to be considered and decided by the Adjudicating Authority.
The Appeal is disposed of accordingly.