Who decides: correct amount of debt, at the time of CIRP admission by NCLT or to be subsequently looked into at the time of collation of the claims by Resolution Professional – Manmohan Gupta Vs. MDS Digital Media Pvt. Ltd. & Anr. – NCLAT New Delhi

In this appeal which was filed against the order of Adjudicating Authority in which CIRP application u/s 9 of IBC has been admitted. Appellant contends that there was actually no debt amount. In the balance sheet of the Operational Creditor also no debt was shown. The amount which was claimed by the Operational Creditor was also not the correct amount.
NCLAT held that the Adjudicating Authority has admitted the Section 9 application on the basis of admission made by the Corporate Debtor for an amount of Rs.8,56,836/-. When the admitted amount is more than the threshold, the Adjudicating Authority did not commit any error in admitting Section 9 application. The question as to what is correct amount of debt was the question which was to be subsequently looked into at the time of collation of the claims by the Resolution Professional and at the stage of admission of section 9 application it was not necessary for the Adjudicating Authority to express any opinion.

Who decides: correct amount of debt, at the time of CIRP admission by NCLT or to be subsequently looked into at the time of collation of the claims by Resolution Professional – Manmohan Gupta Vs. MDS Digital Media Pvt. Ltd. & Anr. – NCLAT New Delhi Read Post »