Claim Rejected

Resolution Professional can reject the claim based on the records and audited books of accounts – M/s. Pani Trading Corporation Vs. Mr. Jagadishchandra B Mistri – NCLT Ahmedabad Bench

The present application is filed against the rejection of the claim of the applicant by the Resolution Professional (RP). There is no written loan agreement between the applicant and the Corporate Debtor. The applicant had explained that the claim was based on ledger account. It has been held by the Hon’ble Supreme Court in the case of Swiss Ribbons Pvt. Ltd. & Another vs. Union of India & Ors. (2019) ibclaw.in 03 SC that Resolution Professional is given administrative as opposed to quasi-judicial powers. Resolution Professional had rejected the claim of the applicant based on the records and audited books of accounts and his action in doing so cannot be faulted with. As sequel to the above discussion, application is rejected and disposed of.

Resolution Professional can reject the claim based on the records and audited books of accounts – M/s. Pani Trading Corporation Vs. Mr. Jagadishchandra B Mistri – NCLT Ahmedabad Bench Read Post »

Whether CIRP Regulation 13 requires any individual notice to be served on the Creditors regarding admission or non-admission of their Claims – Communication of rejection of claims to Creditor – Shapporji Pallonji and Co. Pvt. Ltd. Vs. Kobra West Power Company Ltd. – NCLAT New Delhi

NCLAT held that the CIRP Proceedings were invoked under Section 10 of the Code, that the name of the Appellant was mentioned in the list of Operational Creditors, that the RP had posted on the website that the claims of the Operational Creditors are under verification, and that admittedly Pre-Arbitration Proceedings were pending ‘prior to the invocation of the Section 10 Proceedings’, and there was no contingent Liability or any other provision made in the Resolution Plan, subject of course, to the result of the Arbitration Proceedings.

Whether CIRP Regulation 13 requires any individual notice to be served on the Creditors regarding admission or non-admission of their Claims – Communication of rejection of claims to Creditor – Shapporji Pallonji and Co. Pvt. Ltd. Vs. Kobra West Power Company Ltd. – NCLAT New Delhi Read Post »

Can a claim which was rejected by RP on documentary evidence basis be paid from Contingency Fund after approval of Resolution Plan? – S. Gopi, Proprietor, Goutham roadways Vs. M/s Empee Distilleries Ltd. – NCLAT Chennai

In this case, the claim of the Applicant rejected by Resolution Professional on the basis of documentary evidence. The Adjudicating Authority denied to grant relief to make payment of the Applicant’s Claim from the Contingency Fund.
NCLAT held that Contingency Fund means a provision created in a Resolution Plan to avoid inevitable losses of creditors. It is made to include Liabilities arising which are uncertain and inevitable in nature or pending under verification. Maintaining a Claim does not necessitate or carry any nexus between the commission of a Default and the submission of a Claim. A Creditor can exercise his right to payment or to remedy for the matured, unmatured, secured, unsecured, Disputed or Undisputed Debts. In Code, 2016 to recover Debt from the Corporate Debtor, it is necessary for a Claimant to be a Creditor. While definite, identified or ascertained Claims can be easily accounted for, the problem lies when Claims which are either inevitable or contingent ones.
Further it held that the Contingency Fund is for the specific purpose to cater for Claims which were not Determined and settled finally, at the time of the Resolution Plan. There is a stipulated time frame as provided in the Resolution Plan and the Fund after meeting out the requirements of the Claims, ceased to exist. By no stretch of imagination, it can be inferred that any Claim can be entertained after the Resolution Plan, was fully implemented and the new management of the Successful Resolution Applicant had taken over.

Can a claim which was rejected by RP on documentary evidence basis be paid from Contingency Fund after approval of Resolution Plan? – S. Gopi, Proprietor, Goutham roadways Vs. M/s Empee Distilleries Ltd. – NCLAT Chennai Read Post »

Sale deed which is neither registered nor stamped and was executed before Notary cannot be basis for any claim with regard to the purchase of immovable property – Smt. Sabita A. Biswa Vs. Shri Vinodkumar Pukhraj Ambavat – NCLAT New Delhi

The Adjudicating Authority rejected the Application for claim observing that alleged sale deed is neither registered nor stamped, cannot be looked for any purpose. NCLAT held that we are of the view that the Adjudicating Authority has rightly taken the view that such kind of sale deed which is neither registered nor stamped and was executed before Notary cannot be basis for any claim with regard to the purchase of immovable property as claimed by the Appellant.

Sale deed which is neither registered nor stamped and was executed before Notary cannot be basis for any claim with regard to the purchase of immovable property – Smt. Sabita A. Biswa Vs. Shri Vinodkumar Pukhraj Ambavat – NCLAT New Delhi Read Post »

Important judgment on verification of claim, seeking additional information and rejection of belated claim during corporate insolvency (CIRP) under IBC – Sumat Kumar Gupta, RP, M/s Vallabh Textiles Company Ltd. Vs. M/s Vardhman Industries Ltd. – NCLAT New Delhi

Regulation 12(1) is subject to Regulation 12(2) as expressed in the opening sentence of Rule 12(1). CIRP Regulation 12 does not lay down any specific embargo on a creditor who on having failed to satisfy the Resolution Professional with respect to the claims submitted by him under Regulation 12(1) from refiling his claim under Regulation 12(2) as long as it is done on or before the ninetieth day of the insolvency commencement date. CIRP Regulations need to be viewed in a purposive manner so as to advance the cause of insolvency resolution while safeguarding the interest of all the stakeholders. The Resolution Professional while examining claims is therefore expected to act in a manner which inspires confidence in the Financial Creditor so as to ensure the credibility of the insolvency process. The Resolution Professional by summarily rejecting the belated claims at his own level without presenting the complete facts to the CoC has misconstrued his role, duties, and responsibilities.

Important judgment on verification of claim, seeking additional information and rejection of belated claim during corporate insolvency (CIRP) under IBC – Sumat Kumar Gupta, RP, M/s Vallabh Textiles Company Ltd. Vs. M/s Vardhman Industries Ltd. – NCLAT New Delhi Read Post »

In the absence of filing of the claim within the stipulated time, the Appellant now cannot seek realisation of the claim amounts at belated stage – ADS Resources Ltd. Vs. Shilpi Cables Technologies Ltd. Through Liquidator Mr. Huzefa Fakhri Sitabkhan – NCLAT New Delhi

Login with GoogleOR Username Password Remember Me     Forgot Password In case you’ve already logged in, click here to

In the absence of filing of the claim within the stipulated time, the Appellant now cannot seek realisation of the claim amounts at belated stage – ADS Resources Ltd. Vs. Shilpi Cables Technologies Ltd. Through Liquidator Mr. Huzefa Fakhri Sitabkhan – NCLAT New Delhi Read Post »

The claim based on the decree is claim within the meaning of IBC and the said claim in the CIRP proceedings has to be treated to have been extinguished after the approval of the Resolution Plan – Goodwood Products Vs. M/s. Kitply Industries Ltd. – NCLAT New Delhi

Login with GoogleOR Username Password Remember Me     Forgot Password In case you’ve already logged in, click here to

The claim based on the decree is claim within the meaning of IBC and the said claim in the CIRP proceedings has to be treated to have been extinguished after the approval of the Resolution Plan – Goodwood Products Vs. M/s. Kitply Industries Ltd. – NCLAT New Delhi Read Post »

Scroll to Top