NCLT JUDGEMENT ON SECTION 7, 38, 39, 42, 60(5)(A), 60(5)(B) OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016

NAME		MOBILE NO.	E-MAIL I’D
RANJEET KUMAR		8383098478, 9667769795	rk@courtkutchehry.com
JAI THAKUR		8130703334, 9355723300	jai.thakur@courtkutchehry.com
RAJEEV RANJAN		9334553249	rajiv.ranjan@courtkutchehry.com
ASHOK MISHRA		9718327746	sales@courtkutchehry.com
RAVI KUMAR			ravi.singh@courtkutchehry.com

Navayuga Engineering Pvt. Ltd Vs. Devendra Prasad, Liquidator Of East Coast Energy Pvt. Ltd, (2020) 07 NCLT CK 0061

NCLT allowed the application filed by the applicant, under section 42 read with 60(5)(a) & (b) of the Insolvency and Bankruptcy Code, 2016 (in short IB Code, 2016), against the Respondent/Liquidator, inter-alia seeking directions from this Adjudicating Authority to set aside the illegal and arbitrary decision taken by the liquidator as communicated by way of email dated 28.06.2019 rejecting a part of the claim submitted by the Appellant against the Corporate Debtor herein)  towards idle charges as a part of termination payment due under the contract between the parties and to direct the Liquidator to admit the claim of the Appellant in its entirety. While allowing the application NCLT held that the liquidator ought to have offered an opportunity to the applicant herein to produce enough documentary evidence to verify the claim preferred by the applicant herein. Instead, the liquidator has proceeded to interpret the nature of the claim made under 'idle charges' and classified it as 'consequential damages' under Article 9 of the contract between the parties and not part of Cost incurred by the Applicant under Article 15.7 and took a stand that no liability arises for payment of 'consequential damages' in terms of Article 9.2 and 9.6 of the Contract.