V NAGARJAN (RP) Vs. MEENAKSHI ENERGY LTD

JUDGEMENT

(1.) Counsel for Applicant/RP filed CA/71/IB/17 in CP/511/17 raising an issue in the Application that has been filed by the Respondent before the Arbitral Tribunal for production of the certificates on completion of the project. The Arbitral Tribunal vide its order dated 09.12.2017 has given direction to the Applicant to produce the certificates in relation to the completion of the project in a sealed cover. It has been submitted by the Counsel for the Applicant that the Applicant is under the CIR process and any application cannot be filed before any Court in the light of the provisions of section 14 read with 60 of the IBC, 2016, because the Applicant (Corporate Debtor) will not be able to exercise the 'right of unpaid vendor lien'.

(2.) Counsel for the Respondent submitted that the Arbitral Tribunal has passed a detailed order. The Arbitral Tribunal is also conscious of the fact that in case the Corporate Debtor departs with the certificates of the completion of the Project, there may be financial implications. The Arbitral Tribunal while passing the order observed that "an interim direction is to avoid any controversy on the aspect, whether all the certificates obtained and in the custody of the claimant are made available. Further, the question whether any condition regarding the payment of the amounts said to be due to the claimant, after the initiation of Arbitration Proceedings, has to be imposed, may have also to be considered". In view of these observations, the Applicant may raise the issue before the Arbitral Tribunal for consideration. Accordingly, the Application stands disposed of.