Inclusion of Claim of a Financial Creditor and Member in CoC cannot be reargued, once the order of NCLAT has attained finality – Mahal Hotel Pvt. Ltd. Vs. Dr. Govindarajula Venkata Narasimha Rao RP of Viceroy Hotels Ltd. – NCLAT Chennai

In this case, the reconstituted CoC was challenged, which was dismissed by Adjudicating Authority. ARCIL challenged the dismissal Order in an Appeal which was allowed by NCLAT. NCLAT held that as this Tribunal had examined whether the Appellant is a Financial Creditor within the meaning of Section 5(7) of the Code, the Appellant herein ought to have preferred an Appeal under Section 62 of the Code. It is not in dispute that the Appellant did not challenge these findings by way of an Appeal. The Hon’ble Supreme Court in a catena of Judgments has held that the approval by the Adjudicating Authority renders the Resolution Plan binding on all the Stakeholders.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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