# In the matter of Lanco Babandh Power Limited IA No. 106-2019 in CP (IB) No. 296-07-HDB-2018

> NCLT judgment dated 2019-04-01. Citation: TCN-2019-NCLT-04202. The case involves an application (IA No. 106/2019) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 1 Apr 2019
- **Citation:** TCN-2019-NCLT-04202
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lanco-babandh-power-limited-ia-no-106-2019-in-cp-ib-no-296-07-hdb-2018-5be25bbd

## Summary

### Background

The case involves an application (IA No. 106/2019) filed by the Resolution Professional (RP) of Lanco Babandh Power Limited (Corporate Debtor) seeking directions from the National Company Law Tribunal (NCLT) to direct the Committee of Creditors (COC) to release a sum of Rs.3,68,74,302/- which was already approved by the COC towards the Corporate Insolvency Resolution Process (CIRP) costs. The Corporate Debtor had undergone a CIRP initiated by ICICI Bank Limited under section 7 of the IB Code, 2016. Mr. U. Balakrishna Bhat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP faced challenges in taking charge of the Corporate Debtor due to tense situations at the site and non-payment of salaries. The

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## Facts

The Corporate Debtor, Lanco Babandh Power Limited, underwent a Corporate Insolvency Resolution Process (CIRP) initiated by ICICI Bank Limited. Mr. U. Balakrishna Bhat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP faced difficulties in taking charge of the Corporate Debtor due to tense situations at the site and non-payment of salaries, amounting to Rs.2.90 Crores for more than six months. ICICI Bank released a corpus fund of Rs.90.20 Lakhs to ease the situation. The Committee of Creditors (COC) approved various CIRP costs for different months, but the payments were not released promptly. The RP filed an application (IA No. 106/2019) before the NCLT seeking directions to the COC to release the

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (COC) should be directed to release the approved Corporate …

**Ratio:** The Adjudicating Authority has the power to direct the COC to release approved CIRP

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**Reasoning:** The court reasoned that the COC had already approved the CIRP costs, and the counsel for

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**Interpretation:** This case interprets the powers of the Adjudicating Authority (NCLT) under the

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** U.Balakrish…
- **Respondents:** Lanco Babandh…; ICICI Ban…

## Timeline

- **2018-08-29 — CIRP Init…**: Corporate Insolvency Resolution Process initiated by the Tribunal vide its order dated…
- **2018-08-29 — Appointment…**: Mr. U. Balakrishna Bhat was appointed as the…

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