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The NCLAT was hearing an appeal against the order of the National Company Law Tribunal (NCLT), which had rejected the appellant's application that sought to direct the resolution professional to accept the claim of the financial creditor.
The National Company Law Appellate Tribunal (NCLAT) has rejected an appeal filed by a financial creditor seeking the admission of its financial claim after the resolution plan had been approved by the Committee of Creditors (CoC) but was pending approval from the National Company Law Tribunal (NCLT).
The National Company Law Appellate Tribunal (NCLAT) in Delhi, consisting of Chairperson Ashok Bhushan, Technical Member Barun Mitra, and Technical Member Arun Baroka was hearing an appeal against the order of the National Company Law Tribunal (NCLT), which had rejected the appellant's application that sought to direct the resolution professional to accept the claim of the financial creditor.
The appellant had sought the NCLT to accept the claim as a financial debt under the provisions of Section 5(8) of the Insolvency and Bankruptcy Code.
The Corporate Insolvency Resolution Process against the Corporate Debtor commenced on December 31, 2019. The Insolvency Resolution Professional (IRP) issued a publication on January 2, 2020, and the last date for filing claims was March 18, 2020.
However, the Appellant did not file their claim within the specified time. Subsequently, a resolution plan was approved by the Committee of Creditors (CoC) on March 30, 2021. The Appellant filed their claim with the resolution professional on October 4, 2022.
The National Company Law Tribunal (NCLT) dismissed the application, citing that the claims had been filed with the Resolution Professional (RP) on October 4, 2022, while the plan had already been approved by the creditors on March 30, 2021. Therefore, the NCLT concluded that no direction could be issued.
The National Company Law Appellate Tribunal (NCLAT) agreed with the decision of the NCLT and based its decision on a Supreme Court ruling, which held that after the approval of a resolution plan, claims cannot be entertained.
“Hon’ble Supreme Court in recent Judgment in M/s. R.P.S. Infrastructure Limited Vs. Mukul Kumar and Anr. has already taken the view that after approval of the plan by the CoC, the claims cannot be entertained. There is no dispute with the facts that the claim was filed by the Appellant after approval of the plan by the CoC. The Appellant has also not been able to show that claim of the Appellant was reflected in the records of the Corporate Debtor,” the order reads.
Advocate Pulkit Kapoor appeared for the appellant.
Case title: Suraksha Realty Ltd vs Anuj Bajpai
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