2021 (8) TMI 610 - Tri - Insolvency and Bankruptcy

Liquidator seeking appropriate directions/order in respect of modifications in the List of Stakeholders Report - Section 42 of IBC - HELD THAT - The Respondent modified the entries in the list of the claims of the workmen/employees based on the books of account of the Corporate Debtor and uploaded it on the website of the Corporate Debtor and that the respondent had also sent the said order vide email dated 21.08.2020 in respect of individual claims. On perusal of the filing dates of these appeals, it was found that application were filed on 13.03.2020, which were prior to or on the same day of the modified order of the Liquidator, which was communicated by e-mail dated 21.08.2020. The present Applications should have been filed within 14 days of the decision of the Liquidator i.e., on 21.08.2020. However, the applications were filed before or on the date of the final order of the Liquidator - the applicants failed to make out any case so as to interfere in the impugned action of the respondent. Application dismissed as premature.

Issues Involved:
1. Claims of Workmen/Employees under Section 42 of the Insolvency and Bankruptcy Code, 2016.
2. Decision of the Liquidator regarding the claims.
3. Compliance with procedural requirements and timelines for filing appeals.

Detailed Analysis:

1. Claims of Workmen/Employees under Section 42 of the Insolvency and Bankruptcy Code, 2016:
The appeals were filed by the applicants, who were workmen/employees of Excel Glasses Limited, under Section 42 of the Insolvency and Bankruptcy Code, 2016, challenging the decision of the Liquidator dated 02.01.2020 regarding their claims.

2. Decision of the Liquidator regarding the claims:
The Liquidator issued a Public Announcement on 22.10.2019, calling upon stakeholders to submit proof of their claims by 20.11.2019. The applicants submitted their claims for various dues such as salary arrears, bonus, layoff compensation, closure/retrenchment compensation, notice pay, and gratuity. However, the Liquidator admitted only a portion of these claims, rejecting significant amounts. The Liquidator's decisions were based on the audited books of accounts and the absence of satisfactory responses or documents from the applicants.

3. Compliance with procedural requirements and timelines for filing appeals:
The Tribunal noted that the Liquidator had filed M.A./78/KOB/2020 seeking directions for modifications in the List of Stakeholders Report, which was allowed by the Tribunal on 10.08.2020. The Liquidator was permitted to modify the entries in the list of claims based on the books of account of the Corporate Debtor. The modified list was uploaded on the Corporate Debtor's website and communicated via email on 21.08.2020.

The appeals (M.A/31/KOB/2020 to M.A/67/KOB/2020) were filed on 13.03.2020, prior to the final order of the Liquidator communicated on 21.08.2020. As per Section 42 of the IBC, 2016, appeals should be filed within fourteen days of the receipt of the Liquidator's decision. The Tribunal found that the applicants had filed the appeals prematurely, without waiting for the final decision of the Liquidator.

Tribunal's Findings:
The Tribunal dismissed the applications (M.A/31/KOB/2020 to M.A/67/KOB/2020) as premature, noting that they were filed before the final order of the Liquidator. The Tribunal emphasized that the applicants failed to make a case for interference in the Liquidator's decision. However, the dismissal was without prejudice to the applicants' right to proceed against the Respondent under Section 42 of the IBC, 2016, if they chose to do so.

Conclusion:
The applications were dismissed as premature, with the Tribunal highlighting the importance of adhering to procedural timelines and waiting for the final decision of the Liquidator before filing appeals. The applicants retain the right to appeal under Section 42 of the IBC, 2016, if they wish to challenge the Liquidator's final decision.

← Previous Next →