2019 (11) TMI 1735 - AT - Insolvency and Bankruptcy

Maintainability of application - Completion of CIRP - outstanding dues were prior to the period of CIRP - HELD THAT - Having noticed the fact, the Adjudicating Authority rightly came to the conclusion that the outstanding dues were prior to the period of initiation of Corporate Insolvency Resolution Process and the Appellant having not filed the claim at that stage, now application under Section 9 of the I B Code after completion of the Corporate Insolvency Resolution Process against Corporate Debtor was not maintainable. Appeal dismissed.

Summary

Issues involved:
- Application under Section 9 of the Insolvency and Bankruptcy Code for default of three Invoices
- Maintainability of the application after completion of Corporate Insolvency Resolution Process

Analysis:
1. Application under Section 9 of the Insolvency and Bankruptcy Code for default of three Invoices:
The Appellant filed an application under Section 9 of the Insolvency and Bankruptcy Code against the Corporate Debtor for the default of three Invoices dated 6th January, 2016, 13th January 2016, and 13th July, 2017. However, it was noted that a Corporate Insolvency Resolution Process was previously initiated against the same Corporate Debtor, and a Resolution Plan was approved by the Adjudicating Authority and affirmed by the Appellate Tribunal. This approved Resolution Plan had attained finality after being challenged and dismissed by the Hon'ble Supreme Court. The Adjudicating Authority rightly concluded that the outstanding dues predated the initiation of the Corporate Insolvency Resolution Process, and since the Appellant did not file a claim at that stage, the application under Section 9 of the I&B Code after the completion of the Corporate Insolvency Resolution Process was deemed not maintainable.

2. Maintainability of the application after completion of Corporate Insolvency Resolution Process:
The Adjudicating Authority found that the outstanding dues were prior to the initiation of the Corporate Insolvency Resolution Process and that the Appellant failed to file a claim during that process. Consequently, the Adjudicating Authority held that the application under Section 9 of the I&B Code after the completion of the Corporate Insolvency Resolution Process was not maintainable. After hearing arguments from both parties, the Appellate Tribunal concurred with the Adjudicating Authority's decision and dismissed the appeal. The judgment emphasized that since the approved Resolution Plan had already attained finality, there was no basis to interfere with the impugned order, and thus, the appeal was rejected.