AI Structured Summary
Not yet generated for this judgment
Judgment
I.A. No. 2359, 2360 of 2023:
This application has been filed by IL&FS Infrastructure Debt Fund (IDF) praying for following reliefs:
“PRAYERS
In light, of the aforesaid, the Applicant humbly prays that:
A. This Hon'ble Tribunal be pleased to permit the Applicant to intervene in the captioned Appeal/ matter;
B. This Hon'ble Tribunal be pleased to clarify that the order dated 26th April 2023 does not permit IL&FS to distribute INR 593 Crores with respect to IWEL, till the disposal of Civil Appeals filed by this Applicant before the Hon'ble Supreme Court;
C. For any other and further reliefs/ orders as the facts and circumstances of this case may require.”
In the present case, on an application filed by Union of India being I.A. No. 586/2022, we directed for interim distribution. The interim distribution was subject to final resolution. Some of the entities were kept out of the interim distribution dated 31.05.2022 since objections were raised by those entities and they said that they should be kept out of the interim distribution. IL&FS Wind Energy Ltd. (IWEL) was one of the objector which was kept out of the interim distribution. In Para 17 of the order dated 31.05.2022 following was stated:
“17. As observed above in this Application, we shall hear the objectors as noticed above in detail and the objectors as indicated below shall be kept out of interim distribution”
After 31.05.2022, the objections of those entities which were kept out of the interim distribution by para 18(vi) were considered and some of the entities were removed from the list of kept out of interim distribution, entities like Rapid Metro Rail Gurgaon Limited and ITNL. In subsequent hearing, certain objectors withdrawn their objections like 63 Moons and with regard to IDF which had also filed objections, on 28.03.2023 following order was passed:
“IA No. 586 of 2022: In this application objections were filed by IDF vide Diary No. 33181 of 2022 but no one has appeared for the IDF when the case is called. We adjourn this application to 26.04.2023 at 2.00 P.M.
We make it clear that in event no one appeared for the Objector's IDF on the next date, application shall be heard and decided
Mr. Ramji Srinivasan, Learned Senior Counsel for the ILFS may obtain status with regard to objections filed by the Canara Bank by the next date.”
Subsequently, on 26.04.2022, order was passed including all the entities, regarding resolution of IWEL direction was issued, it was specifically mentioned that interim distribution shall be subject to any order passed by the Hon’ble Supreme Court. IDF already filed an appeal before the Hon’ble Supreme Court challenging order dated 12.03.2020, which is pending consideration.
Shri Dave, learned senior counsel for the Applicant submits that resolution with regard to the entity was objected and for which sale was already completed, hence, order dated 12.03.2020 was not as per the initial framework.
Shri Ramji Srinivasan, learned counsel for the IL&FS submits that these are the same issues which were raised before the Hon’ble Supreme Court and any order of stay has not been passed in the Appeal. Since the Union of India has come up that large amount of funds has been accumulated which Financial Creditors are praying for distribution, interim distribution was proposed which was subject to final distribution and was done to extend some immediate benefit to the Financial Creditors. It is submitted that order was passed for interim distribution so that money may not accumulate and be utilized by the Financial Creditors. Shri Ramji Srinivasan further submits that even in the interim distribution, IDF shall be given Rs.153 Crores as against Rs.253 Crores.
Shri Dave submits that the amount which is being given should be without prejudice to the rights and contentions of the Applicant.
Shri Ramji further submits that before distribution of any amount under the interim distribution an undertaking is taken to refund the excess amount, if any, pursuant to the final resolution. For example, if Hon’ble Supreme Court passes an order that applicant is entitle for distribution of a higher amount, on the strength of undertaking taken from the creditors the interest of the objectors shall be safeguarded.
We are of the view that no clarification is required with regard to interim distribution as directed by earlier order dated 26.04.2023, as interest and rights of stakeholders including applicant are fully protected, as submitted by learned counsel for the IL&FS. With these observations, we dispose of this application.