2021 (3) TMI 1051 - Tri - Insolvency and Bankruptcy

Seeking to admit applicants claim for interest on their admitted claims of gratuity and salary dues for the period from the dates of their respective dates of retirement up to the date of its payment - seeking to include the claims for interest thereof in the Information Memorandum under Section 29 of the said Act - resolution plan already approved - HELD THAT - Since the Resolution Plan has already been approved, this Tribunal cannot direct the Respondent herein to grant any relief to the applicants. It is evident that the applicants have been granted interest on gratuity till the date of commencement of CIRP. Hence nothing survives for consideration in these applications. Application dismissed.

Summary

Issues:
- Interpretation of Section 60(5) of Insolvency and Bankruptcy Code, 2016 regarding the admission of claims for interest on gratuity and salary dues.
- Consideration of belated applications seeking interest on gratuity and salary dues after the approval of the Resolution Plan.
- Examination of the Resolution Professional's obligations post-approval of the Resolution Plan.

Analysis:
1. The applicants, retired employees of the Corporate Debtor, filed applications under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking interest on their gratuity and salary dues. They claimed entitlement to interest on gratuity at the statutory rate from their retirement dates until payment. The respondents, Resolution Professional, did not communicate a decision on these claims, prompting the applicants to approach the Tribunal.

2. The Resolution Professional contended that the applications were belated and infructuous as the Tribunal had approved the Resolution Plan. Referring to Essar Steel India Limited Vs. Satish Kumar Gupta and Others, the Resolution Professional argued that post-approval claims could disrupt the resolution process. He highlighted that all claims were appropriately addressed in the Resolution Plan, and no additions could be made post-approval, as it would defeat the purpose of the I&B Code.

3. The Resolution Professional stated that interest on gratuity had already been admitted and included in the Information Memorandum for the applicants. Detailed tables were provided showing the principal and interest claimed, admitted, and rejected for each applicant. The Resolution Professional emphasized that the claims process had been completed within the stipulated time frame, and the Resolution Plan was formulated based on verified and admitted claims.

4. The Tribunal, after hearing arguments from both parties, noted that the Resolution Plan had been approved, rendering it unable to direct the Respondent to provide further relief to the applicants. It was observed that the applicants had already been granted interest on gratuity until the commencement of the Corporate Insolvency Resolution Process, leading to the dismissal of the applications (IA(IBC)34/KOB/2021 and IA(IBC)/39/KOB/2021) on 22nd March 2021.