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The NCLAT was hearing an appeal challenging the NCLT's decision that rejected IDBI's application submitting its claim
The National Company Law Appellate Tribunal (NCLAT) in New Delhi has recently observed that the Corporate Insolvency Resolution Process (CIRP) cannot be endlessly delayed, even if a resolution plan is awaiting approval from the adjudicating authority.
“In view of the aforesaid facts and circumstances of the present case, once the Hon’ble Supreme Court has held that even in a case where the Adjudicating Authority has not approved the plan would not imply that the plan can go back and forth making the CIRP an endless process because in that matter it would result in the reopening of the whole issue, particularly as there may be other similar persons who may jump onto the bandwagon,” the bench observed.
The Principal Bench of the NCLAT in New Delhi presided over by Justice Rakesh Kumar Jain and Technical Member Arun Baroka, was hearing an appeal challenging the NCLT's decision that rejected IDBI's application submitting its claim.
The appeal was against the Resolution Professional's order, which had initially rejected IDBI's claim due to a 502-day delay. Importantly, IDBI did not file an appeal with the NCLAT, which resulted in the NCLT's ruling becoming final.
Simultaneously, in a separate ongoing proceeding in the Supreme Court concerning the Corporate Insolvency Resolution Process (CIRP) of the same company, the Supreme Court had instructed the Resolution Professional (RP) to consider a fresh Expression of Interest (EOI) in light of higher offers presented to the Committee of Creditors (CoC).
In response to this Supreme Court directive, IDBI submitted a renewed claim to the resolution professional, which was once again declined. Subsequently, IDBI filed an application with the NCLT after the rejection. Following the NCLT's rejection of the application, the bank approached the NCLAT for relief.
However, NCLAT rejected IDBI’s claim while noting that if the appeal was allowed then there may be other persons who may also file applications for admitting their delayed claims which would make CIRP an endless process.
Advocate Praful Jindal appeared for IDBI Bank.
Advocates Abhishek Anand & Karan Kohli appeared for Jalesh Kumar Grover.
Case title: IDBI Bank Ltd vs Jalesh Kumar Grover
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