Tribunal Upholds Resolution Plan, Rejects Condonation of Delay in Filing Claims
In a significant ruling, the National Company Law Tribunal (NCLT) Mumbai Bench dismissed several interlocutory applications seeking condonation of delay in filing claims in the insolvency proceedings of Calyx Lenora Realty LLP. The tribunal, comprising Shri Anil Raj Chellan and Shri K. R. Saji Kumar, upheld the resolution plan approved by the Committee of Creditors (CoC) and emphasized the importance of adhering to statutory timelines under the Insolvency and Bankruptcy Code, 2016.
The case involved multiple applicants, including allottees and an operational creditor, who sought to file claims after the resolution plan had been approved by the CoC. The tribunal noted that the applicants were not vigilant in asserting their rights and failed to demonstrate exceptional circumstances warranting a delay condonation.
The tribunal highlighted that the public announcement inviting claims was duly published in widely circulated newspapers, satisfying the statutory requirements. The applicants contended that the announcement did not reach a substantial audience; however, the tribunal found the publication adequate, as evidenced by claims filed by over 200 homebuyers.
The tribunal further observed that the Insolvency and Bankruptcy Code mandates a time-bound process, with specific provisions allowing for late claims only if they do not impede the resolution process. The court referred to the Supreme Court's ruling in RPS Infrastructure Ltd. v. Mukul Kumar, which cautioned against reopening the resolution process post CoC approval.
In conclusion, the tribunal dismissed the applications, underscoring the need for vigilance among creditors and reaffirming the integrity of the insolvency resolution process.
Bottom line:-
Insolvency and Bankruptcy Code, 2016 - Condonation of delay in filing claims by creditors post approval of Resolution Plan by CoC is not permissible unless exceptional circumstances are demonstrated. Statutory provisions related to public announcements and filing of claims must be adhered to strictly.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Section 15, Section 60(5), Regulation 6 and Regulation 6A of CIRP Regulations
Mrs. Alka Ramanlal Gandhi v. Mr. Atul Tansukhlal Mehta, (NCLT)(Mumbai) : Law Finder Doc id # 2933864
