Creditor Entitled To Claim From Successful Resolution If It's Suit Is Decreed: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Ashok Bhushan (Chairperson), Justice N Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating in an appeal filed in Goltens India Pvt. Ltd. v Sudip Bhattacharya, has upheld the Adjudicating Authority's order to earmark Rs. 1 towards a contingent claim arising out of a recovery suit filed before the High Court. The NCLAT Bench held that if the suit is decreed then the creditor shall be entitled to claim from the Successful Resolution Applicant.Background Facts Reliance Naval and Engineering Ltd. ("Corporate Debtor") is a part of the Reliance Group and the first private sector company in India to have obtained licence and contract to build warships. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process ("CIRP") by the Adjudicating Authority on 15.01.2020. Goltens India Pvt. Ltd. ("Appellant") is a leading service provider for marine, offshore industrial, oil and gas sector. In 2019, the Appellant had filed a Commercial Suit before Bombay High Court against the Corporate Debtor, for recovery of outstanding amounts. The suit is pending adjudication. Subsequently, when CIRP was initiated against the Corporate Debtor in 2020, the Appellant also filed its claim with the Resolution Professional on 29.09.2020. The Resolution Professional accepted the Appellant's claim as 'Contingent Claim' and when the Resolution Plan was approved by the Committee of Creditors, a sum of Rs. 1 was earmarked to the claim of the Appellant as a contingent claim. The Appellant filed an I.A. No. 135 of 2021 before the Adjudicating Authority, seeking direction to the Resolution Professional to include the name of the Appellant in the list of the creditors of the Corporate Debtor. Adjudicating Authority disposed off the application vide dated 30.03.2022 with following observations: "Learned Senior Counsel Mr. Pahwa states that in reply page No. 24, the e-mail communication sent to the Applicant on 16.03.2021, the RP has mentioned that in the light of the pendency of the suit being COMS/1218/2019 before the Hon'ble Bombay High Court, the said amount claimed by the Applicant will be treated as contingent claimed until any judgment pronounced in the said suit, but admitting nominal amount of INR 1 as the claim of Applicant which is reflected on the website, in view of above, we consider that nothing survives in this Application." The Appellant filed an appeal before the NCLAT challenging the order dated 30.03.2022. Decision Of The NCLAT The NCLAT observed that Adjudicating Authority had already observed that the claim of the Appellant is to be treated as contingent till the judgment is pronounced in the suit. "We see no reason to take any other view of the matter. In the event the suit of the Appellant is decreed, the claim being contingent, the Appellant shall be entitled claim from the Successful Resolution Applicant." The appeal was disposed of by the Bench. Case Title: Goltens India Pvt. Ltd. v Sudip Bhattacharya Case No.: Company Appeal(AT) (Insolvency) No. 571 of 2022 Counsel For Appellant: Mr. Adarsh Tripathi and Mr. Vikram Singh Baid, Advocates Counsel For Respondent: Ms. Preachi Johri, Advocate Click Here To Read/Download Order

Creditor Entitled To Claim From Successful Resolution If It's Suit Is Decreed: NCLAT Delhi

Pallavi Mishra

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Creditor Entitled To Claim From Successful Resolution If It's Suit Is Decreed: NCLAT Delhi

Pallavi Mishra

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Pallavi Mishra

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