NCLAT Delhi: Claims Cannot Be Entertained After Approval Of Resolution Plan By CoC Even If Resolution Plan Is Still Pending For Approval By NCLT
Pragya Kriti
8 Nov 2023 7:15 AM GMT
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr Barun Mitra and Mr. Arun Baroka (Technical Members) has rejected an appeal and held that claims cannot be entertained after approval of the Resolution Plan by Committee of Creditors (“CoC”) even if the Resolution Plan is still pending for approval of the...
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr Barun Mitra and Mr. Arun Baroka (Technical Members) has rejected an appeal and held that claims cannot be entertained after approval of the Resolution Plan by Committee of Creditors (“CoC”) even if the Resolution Plan is still pending for approval of the National Company Law Tribunal (“NCLT”).
Background Facts
On 31.12.2019, Corporate Insolvency Resolution Process (“CIRP”) proceedings was filed by Suraksha Realty Ltd. (“Appellant”) against Panache Aluminium Extrusion Pvt. Ltd. (“Corporate Debtor”). On 02.01.2020. Interim Resolution Professional (“IRP”) issued a publication that the last date for filing the claim was 18.03.2020.
The Appellant did not file the claim within the time limit. On 30.03.2021, the CoC approved the Resolution Plan of the Corporate Debtor.
On 04.10.2022, the Appellant filed its claim before Mr Anuj Bajpai i.e., Resolution Professional of the Corporate Debtor (“Respondent”). The Appellant further filed an application in front of NCLT, to accept the claim as a Financial Debt under the provision of Section 5(8) of the Insolvency and Bankruptcy Code, 2016.
NCLT dismissed the application and observed that the claim was filed with the Resolution Professional on 04.10.2022 whereas the Resolution Plan was already approved on 30.03.2021. Aggrieved by the order, the Appellant, filed an appeal in front of NCLAT.
Contentions of Appellant
The Appellant argued that since the Application for approval of the Resolution Plan is still pending before the NCLT, the claim of the Appellant can be considered.
Contentions of Respondent
The Respondent opposed the submissions and argued that since the Resolution Plan had already been approved by the CoC, no new fresh claim could be filed by the Appellant.
The NCLAT rejected the appeal and held that claims cannot be entertained after approval of the Resolution Plan by the CoC even if the Resolution Plan is still pending for approval of the NCLT.
NCLAT referred to the Supreme Court judgement in M/s. R.P.S. Infrastructure Limited Vs. Mukul Kumar and Anr. where the court has already taken the view that after approval of the plan by the CoC, any claims cannot be entertained.
Case Title: Suraksha Realty Ltd vs Anuj Bajpai Resolution Professional of Panache Aluminium Extrusion Pvt. Ltd.
Case No.: Company Appeal (AT) (Insolvency) No. 1389 of 2023
Counsel For Appellant: Advocate Pulkit Kapoor
