Claim arises from arbitral award after the liquidation commencement date cannot be admitted even the Liquidator participated in the arbitration proceeding during the liquidation process – SBS Holdings, Inc. Vs. Mohan Lal Jain, Liquidator of SBS Transpole Logistics Pvt. Ltd. – NCLAT New Delhi
In this important judgment, Hon’ble NCLAT held that:
(i) Liabilities Liquidation Process Regulation 13 are to be determined as on the liquidation commencement date.
(ii) Claims to be filed by the claimants as on the liquidation commencement date.
(iii) Liquidation Regulations, does not contemplate consideration of any claim, which arises subsequent to liquidation commencement date.
(iv) Regulation 28 is only Regulation, which deals with a claim, which claim is not due on the liquidation commencement date, but the claim has to be filed, by such claimant.
(v) When a claim has not arisen on the liquidation commencement date, the Regulation do not contemplate admission of such claim.
(vi) Even if, Hon’ble NCLAT proceeds on the premise that arbitration proceedings was continued on behalf of the Corporate Debtor with the authorization of RP, the claim on the basis of Award of cost in such arbitration proceedings, which award was delivered after commencement of liquidation, could not have been entertained in the liquidation proceedings of the Corporate Debtor as has been observed by us in preceding paragraph of this judgment.
