# 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-04225. 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-04225
- **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-2018-92f5d832

## 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/- 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).

## 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 sought the release of Rs.3,68,74,302/- approved by the Committee of Creditors (COC) for CIRP costs, including salaries and wages. The RP faced challenges in site visits and securing assets due to non-payment of dues. The COC approved various CIRP costs, but payments were delayed. Some COC members expressed concerns about releasing funds without site possession. The RP filed an application under Regulation 30 Chapter VIII of the Insolvency and Bankruptcy Board of India (Insolvency

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (COC) should be directed to release the sum of Rs.3,68,74,302/- …

**Ratio:** The legal principle is that once the COC approves the CIRP costs, they are obligated to

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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 issue involves the interpretation of the obligations of the COC under the

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**Application:** In this specific case, the court applied the principle by directing the COC to

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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 (CIRP) initiated by the Tribunal vide its order…
- **2018-08-29 — Appointment…**: Mr. U. Balakrishna Bhat was appointed as the…

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