The moratorium under IBC does not preclude consideration of applications that do not prejudice the corporate debtor and the banks were entitled to institute a suit against the decree holders.

JUDGMENT

(Prayer in A.No.4974 of 2021: This Application is filed under Order XIV Rule 8 of O.S. Rules r/w Order 1 Rule 10(2) CPC praying to implead the proposed respondents 1 to 9 as respondents in E.P.No.69 of 2018.)

Common Order:

1. Four suits were filed by creditors of Ind Barath Thermal Power Limited (Ind Barath) seeking to recover amounts due and payable by Ind Barath. In each suit, at the pre-trial stage, orders were passed against a common garnishee, TANGEDCO. Later, each suit was decreed. The details of the said suits, the amounts deposited by the garnishee and the decrees passed therein are set out below:

E.P.No.69 of 2018 was filed to execute the decree in C.S.No.950 of 2017 and the petitioner therein prayed for attachment of the entire sums lying to the credit of C.S.Nos.303, 401 and 403 of 2017 and for payment of the sums lying therein towards satisfaction of the decree passed in the suit. Separately, Application Nos.3605, 3606, 3923 of 2021 in C.S.Nos.401, 403 and 303 of 2017, respectively, were filed by the respective plaintiff seeking payment out of monies lying to the credit of the respective suit. By order dated 29.11.2021, the Court ordered rateable distribution to the creditors in the manner set out below:

Pursuant to the above mentioned order, it appears that the amounts directed to be paid to the four decree holders were paid to them. In these facts and circumstances, a consortium of banks of which Punjab National Bank is the lead bank has filed multiple applications. These applications may be classified into three categories: (a) applications to implead the banks as respondents in E.P.No.69 of 2018; (b) applications to stay the operation of the order dated 29.11.2021; and (c) applications to set aside the order.

2. Oral arguments were made by Mr.E.Om Prakash, learned senior counsel for the consortium of banks; Mr.P.V.S.Gridhar, learned counsel for M/s.IL & FS Financial Services Limited(IFIN); Mr.Chandramouli Prabhakar, learned counsel for Ind Barath; Mr.T.R.Rajagopalan, learned senior counsel for Trimex Industries Pvt Ltd (Trimex); Mr.A.R.L.Sundaresan, learned senior counsel for Millennium Steel India Pvt Ltd (Millenium Steel); and Mr.Yashod Vardhan, learned senior counsel for Blackburn Fuels Private Limited (Blackburn Fuels).

3. Mr.E.Om Prakash, learned senior counsel, submitted that garnishee orders were passed in the four suits while the suits were at the predecree stage. Pursuant thereto, the garnishee, TANGEDCO, deposited amounts due and payable to Ind Barath to the credit of the respective suit. Thereafter, by order dated 29.11.2021, the amounts lying to the credit of the respective suit were directed to be paid to the decree holders in specific proportions. Learned senior counsel submitted that the appli