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2022 (10) TMI 199 - Tri - Insolvency and BankruptcyDirection to consider, accept and include Form B in the list of operational creditors along with the amount of interest - condonation of late submission of the claim - HELD THAT - It is an established position that the Resolution process is a time-bound one, and any action resulting in delay of the process, and consequent loss in value of the assets of the CD, is against the objectives of the Code. In the present case, the delay in filing of the claims have been way beyond the approval of the resolution plan by the COC. Any acceptance of such delay will violate the basic tenets of IBC, and, hence, the prayer of the applicant can't be acceded to - The prayer of the applicant is not acceded to - Application dismissed. Seeking cancellation/modification of the resolution plan of C Mohan International - Section 36(4)(iii) of the IBC, 2016 - HELD THAT - The SRA has filed a compliance affidavit by Spl. Diary No. 268 dated 30.08.2022 - In view of the compliance affidavit by SRA, the present application IA No. 519/2021 is rendered infructuous and disposed of accordingly.
Issues:
1. Late submission of claim under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. 2. Resolution plan modification regarding provident fund and gratuity fund assets. Issue 1: Late Submission of Claim The Applicant filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking condonation for the late submission of their claim. The Applicant, Devdeep Cotton Industries, requested the Resolution Professional to consider, accept, and include Form B in the list of operational creditors along with interest. The Applicant claimed that due to being unaware of the submission process, they missed the deadline of 31.12.2019 for submitting the claim in Form B. The Resolution Professional did not inform the Applicant about the claim status until the Applicant inquired in July 2021. The Respondent-RP argued that the Applicant submitted the claim in Form B on 10.09.2021, which was well beyond the 90-day period stipulated for claim submission. The delay was over 543 days from the last date, significantly affecting the resolution process's timeline and objectives. Issue 2: Resolution Plan Modification Another application was filed by Mr. Bal Krishan, Ex-Employee and Ex-workers of M/s. KSM Spinning Mills Limited, against various parties, including the Resolution Professional and the Resolution Applicant. The Applicants sought to cancel or modify the resolution plan of C Mohan International, claiming it violated Section 36(4)(iii) of the IBC, as it included provident fund and gratuity fund assets. Allegations were made against the Resolution Professional's functioning, although specifics were not presented during the proceedings. In response, the Resolution Professional filed a compliance affidavit stating the intent to pay the due amounts under relevant schemes up to the resolution plan's approval date, resolving the issue raised by the Applicants. In the judgment, the Tribunal emphasized the time-bound nature of the resolution process under the IBC. Any delay, such as late claim submissions, could jeopardize the process and undermine the Code's objectives. Referring to relevant judgments, the Tribunal highlighted the importance of finalizing all claims before approving a resolution plan to avoid uncertainties for the successful resolution applicant. Considering these principles, the Tribunal dismissed the first application for late claim submission, citing the significant delay and its adverse impact on the resolution process. For the second issue regarding resolution plan modification, the compliance affidavit filed by the Resolution Professional addressed the concerns raised by the Applicants, rendering the application moot and leading to its disposal.
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