2019 (10) TMI 1280 - AT - Insolvency and Bankruptcy

Determination of claim amount - HELD THAT - The Resolution Professional had no jurisdiction to determine the claim as pleaded in the Appeal. He could have only collated the claim based on evidence and the record of the Corporate Debtor or as filed by Jonathan Mouralidarane (Financial Creditor). If an aggrieved person thereof moves before the Adjudicating Authority and the Adjudicating Authority after going through all the records comes to a definite conclusion that certain claimed amount is payable the Resolution Professional should not have moved in Appeal as in any manner he will not be affected. Appeal dismissed.

Summary

Issues:
Jurisdiction of Resolution Professional to determine claims

Analysis:
The judgment revolves around the issue of the jurisdiction of the Resolution Professional to determine claims. The Resolution Professional had collated the claim of the Financial Creditor and concluded it as Nil. Subsequently, the Financial Creditor filed an application under section 60(5) before the Adjudicating Authority, which accepted the total claim after due consideration. The Resolution Professional challenged this decision through an appeal.

The Appellate Tribunal, after hearing the arguments, observed that the Resolution Professional's role was limited to collating claims based on evidence and records, not determining them. The Tribunal emphasized that if the Adjudicating Authority, after reviewing all relevant documents, decides on a certain payable amount, the Resolution Professional should not appeal as it would not affect their position. Therefore, the Tribunal dismissed the appeal, highlighting that the Resolution Professional overstepped their jurisdiction by challenging the Adjudicating Authority's decision.

In conclusion, the Tribunal dismissed the appeal without imposing costs, despite being inclined to do so. The judgment underscores the importance of understanding the specific roles and limitations of different parties involved in insolvency proceedings, such as the Resolution Professional and the Adjudicating Authority, to ensure a fair and efficient resolution process.