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2021 (9) TMI 1369 - AT - Insolvency and BankruptcySeeking condonation of delay in filing its claim with the Resolution Professional - HELD THAT - The Resolution Plan has been approved by Committee of Creditors on 05th June, 2021 and at this late stage, allowing the claim of the Applicant, will not only cause grave prejudice to the completion of the CIRP but it will also be unfair to other creditors, who could not have filed their claim before the stipulated date and on this ground the Ld. Adjudicating Authority dismissed the application. There is no ground for interference in the Impugned Order passed by the Ld. Adjudicating Authority - Appeal dismissed.
Issues: Condonation of delay in filing claim with the Resolution Professional
The judgment pertains to an appeal filed by the Appellant-GRP Power Solutions Private Limited against the Order passed by the Adjudicating Authority dismissing their application seeking condonation of delay in filing a claim with the Resolution Professional. The Appellant claimed to have submitted their claim on 19th December, 2020, after learning about the rejection of the claim on 14th January, 2021. The Appellant argued that they only became aware of the Corporate Insolvency Resolution Process (CIRP) on 27th November, 2020, and cited reasons such as the CEO's age and working from home due to the COVID-19 situation as causes for the delay. The Learned Counsel for the Appellant contended that the CIRP against the Corporate Debtor commenced on 7th February, 2020, with the last date for filing claims being 21st February, 2020. The 90-day period for filing claims ended on 11th May, 2021. However, the Adjudicating Authority, after considering all facts, including the approval of the Resolution Plan by the Committee of Creditors on 5th June, 2021, concluded that allowing the claim at a late stage would prejudice the completion of the CIRP and be unfair to other creditors who met the stipulated deadline. Consequently, the Adjudicating Authority dismissed the application for condonation of delay. Upon review, the Appellate Tribunal found no grounds for interference in the decision of the Adjudicating Authority and upheld the dismissal of the appeal. Therefore, the Appeal filed by the Appellant was dismissed, affirming the decision of the Adjudicating Authority regarding the condonation of delay in filing the claim with the Resolution Professional.
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