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2021 (11) TMI 472 - AT - Insolvency and BankruptcyConsideration of new/undecided claims, after implementation of Resolution plan - HELD THAT - Once the Resolution Plan has been implemented after approval by the Adjudicating Authority, any claim cannot be considered. Hon ble Supreme Court has held in the matter of COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS 2019 (11) TMI 731 - SUPREME COURT and also in the matter of JAYPEE KENSINGTON BOULEVARD APARTMENTS WELFARE ASSOCIATION ORS. VERSUS NBCC (INDIA) LTD. ORS. 2021 (3) TMI 1143 - SUPREME COURT that a Successful Resolution Applicant cannot be faced with undecided claims after the Resolution Plan submitted by him has been approved as this would amount to a hydra head popping up, which would throw into uncertainty amounts payable by a prospective Resolution Applicant who successfully takes over the business of the Corporate Debtor. There is no legal provision that allows it to recall or review its order dated 20.2.2020 approving the resolution plan for the corporate debtor. Moreover, once the Resolution Plan has been approved and implemented, any new/undecided claims cannot be considered as has been held in a number of judgments of the Hon ble Supreme Court - Appeal dismissed.
Issues Involved:
- Appeal filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 against Impugned Order dated 04.06.2021 passed by National Company Law Tribunal, New Delhi. - Appellant's claim as a financial creditor not considered by the resolution professional. - Delay in filing the claim by the Appellant. - Request for setting aside the impugned order or remanding the case back to the Adjudicating Authority for reconsideration. - Legal provisions for recalling or reviewing the order approving the Resolution Plan. - Precedents set by the Hon'ble Supreme Court regarding consideration of claims after the implementation of a Resolution Plan. Detailed Analysis: 1. The appeal was filed against the Impugned Order dated 04.06.2021 passed by the National Company Law Tribunal, New Delhi, in relation to an Insolvency and Bankruptcy Code matter. The Appellant, a statutory authority, had its claim as a financial creditor not considered by the resolution professional, leading to the appeal under Section 61 of the IBC. 2. The Appellant argued that it was unaware of the ongoing Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and hence filed its claim after the approval of the Resolution Plan by the Adjudicating Authority. The Appellant sought setting aside of the impugned order or reconsideration by the Adjudicating Authority. 3. The Adjudicating Authority noted the delay in filing the claim by the Appellant, which was filed over 11 months after the approval of the Resolution Plan. The Authority emphasized that the Appellant should have been vigilant regarding the CIRP proceedings to safeguard its interests and that the delay in filing the claim was substantial. 4. The Adjudicating Authority highlighted that there is no provision in the IBC for recalling or reviewing the order approving the Resolution Plan. The proper course for the Appellant, if aggrieved, would have been to file an appeal within the stipulated limitation period. The Authority also mentioned that once a Resolution Plan is implemented, new or undecided claims cannot be entertained. 5. Citing precedents set by the Hon'ble Supreme Court, the Adjudicating Authority emphasized that a Successful Resolution Applicant cannot face undecided claims post-implementation of the Resolution Plan. The Supreme Court rulings underscore the importance of finality in Resolution Plan approvals to avoid uncertainty for the Resolution Applicant. 6. In conclusion, the appeal was dismissed at the admission stage, with no orders as to costs. The decision aligned with the Adjudicating Authority's stance that there is no legal provision to reconsider or recall an order approving a Resolution Plan once it has been implemented, in line with established legal principles and precedents.
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