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Judgment
Heard Learned Counsel for the parties.
This Appeal has been filed against the Order dated 15th December, 2022 passed in I.A. No. 629 of 2022. The Appellant has filed the Application praying for Respondent No. 1 to be restrained from disbursing any further amount received from sale of fixed assets of the Corporate Debtor. The Adjudicating Authority noticing paragraph 4 of the Order of this Appellate Tribunal dated 27.01.2022 in Company Appeal (AT) Insolvency No. 1068 of 2021 has dismissed the Application.
In paragraph 4 of the Order of this Appellate Tribunal, following has been observed:
“4. Learned counsel for the Liquidator submits that as stated by the Liquidator in his reply/counter affidavit, the Liquidator has no objection in distribution of INR 223 crores as per waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016 (for short ‘Code’) subject to undertaking that in event any of the member of the CoC receives any amount surplus to which it was entitled would undertake to return the same.”
It has been noted in paragraph 4 of the Order of this Tribunal that the disbursement shall be subject to undertaking that in event any of the member of the CoC receives any amount surplus to which it was entitled, the same shall be returned. Thus, disbursement was to be made subject to above undertaking which protects the interest of all.
In view of the aforesaid, we see no error in the Order passed by the Adjudicating Authority, the Appeal is dismissed.