2024 (4) TMI 441 - SCH - Insolvency and Bankruptcy

Rejection of claim of the Appellant(s) to be declared as Financial Creditors of the Corporate Debtor - it was held by NCLAT that The condition for declaring the Appellant(s) as Financial Creditor are not satisfied in the claims submitted by the Appellant(s) and both Resolution Professional and Adjudicating Authority have rightly rejected their claims as Financial Creditor for valid reasons - HELD THAT - There are no good ground and reason to interfere with the impugned judgment and hence, the present appeal is dismissed. In the present case, the appellant - Skil Infrastructure Limited is a corporate guarantor as per Section 5(5A) of the Insolvency and Bankruptcy Code, 2016. Its claim against the second/ new promoters/management will not make them a financial creditor against the corporate debtor itself. Section 140 of the Contract Act, 1872 cannot be pressed and is not applicable. Application disposed off.

Summary

The Supreme Court dismissed the appeal as it found no good ground to interfere with the impugned judgment. The appellant, Skil Infrastructure Limited, as a corporate guarantor, cannot claim against the new promoters/management under the Insolvency and Bankruptcy Code. Section 140 of the Contract Act, 1872 is not applicable in this case. Pending applications will be disposed of.