By payment of Insurance Company to Operational Creditor of its claim, Corporate Debtor cannot be absolved from its liability to discharge its Operational Debt and cannot be a ground to reject IBC Section 9 application – Mr. Milan Aggarwal (Suspended Director of Prayag Polytech Pvt. Ltd.) Vs. Saudi Basic Industries Corporation (SABIC) – NCLAT New Delhi
In this important judgment on payment by Insurance Company, Hon’ble NCLAT held that:
(i) The Corporate Debtor cannot take benefit of the fact that Insurer had paid the claim to the Insured. By payment of the Insurance Company to the Operational Creditor of its claim, the Corporate Debtor cannot be absolved from its liability to discharge its operational debt.
(ii) Operational Creditor is under obligation to take proceeding to recover its dues and handover the amount to the Insurance Company.
(iii) When Operational Creditor has filed Section 9 Application, it is not open for the Corporate Debtor to submit that Application deserves to be rejected, since the amount has been received by the Operational Creditor from the Insurance Company.
(iv) Corporate Debtor cannot take shelter on the ground that Operational Creditor has received the claimed amount from insurance Company. Insurance Company has made payment to the Operational Creditor of its claim, cannot be a ground to reject Section 9 Application.
