The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member – Technical), and Arun Baroka (Member – Technical), dismissed an appeal arising from an order by the NCLT Mumbai. The tribunal held that the hire charges for the assets not used by the corporate debtor during the CIRP cannot be classified as CIRP costs under Regulation 31(b) of the CIRP Regulations.
Background
CIRP of the corporate debtor started in February 2024. However, the winding-up process of the corporate debtor commenced in 2017-18 itself. The appellant’s cranes were in the possession of the corporate debtor, and for the same, the appellant issued invoices for the…
