2023 (4) TMI 1280 - AT - Insolvency and Bankruptcy

Admission of claim after Resolution Plan approved - HELD THAT - From the facts which has been brought on record it does appear that there was inordinate delay in filing the claim by the Appellant. The Application which was filed by the Appellant came to be rejected by the Adjudicating Authority observing that Resolution Plan having been approved, no claim can survive. Learned Counsel for the Appellant has relied on Judgement of Hon ble Supreme Court in STATE TAX OFFICER (1) VERSUS RAINBOW PAPERS LIMITED 2022 (9) TMI 317 - SUPREME COURT - there is no necessity to consider the judgement since the claim of the Appellant was not admitted by the RP or by the Adjudicating Authority. There are no error in the order, the Appeal is dismissed.

Summary

Issues involved:
The issues involved in the judgment are the dismissal of the application by the Adjudicating Authority, delay in filing the claim by the Appellant, and the reliance on a Supreme Court judgment.

Dismissal of the Application:
The appeal was filed against the order dated 07.02.2023 where the Adjudicating Authority dismissed the Application I.A. No. 439 of 2023 filed by the Appellant. The Resolution Plan was approved on 23.12.2022, and the Adjudicating Authority observed that since the Resolution Plan had been approved, no claim could survive. The Adjudicating Authority did not admit the claim of the Appellant, leading to the rejection of the Application.

Delay in Filing Claim:
The Corporate Insolvency Resolution Process (CIRP) in this case commenced on 14.10.2019, with the Appellant filing its provisional claim on 07.01.2021 and the final claim on 26.02.2021. However, it was noted that there was inordinate delay in filing the claim by the Appellant, which ultimately led to the rejection of the Application by the Adjudicating Authority.

Reliance on Supreme Court Judgment:
The Learned Counsel for the Appellant relied on the Judgment of the Hon'ble Supreme Court in Civil Appeal No. 1661 of 2020, State Tax Officer Vs. Rainbow Papers Ltd., decided on 06th September, 2022. However, the Tribunal did not find it necessary to consider this judgment as the claim of the Appellant was not admitted by the Resolution Professional or the Adjudicating Authority. The Tribunal upheld the order of the Adjudicating Authority, citing the judgment in "Ghanashyam Mishra & Sons Vs. Edelweiss Asset Reconstruction," and subsequently dismissed the appeal.