2024 (9) TMI 249 - AT - Insolvency and Bankruptcy

Entitlement to allotted units - claims filed before approval of the plan by the Adjudicating Authority - HELD THAT - The claims which were filed after the cut-off date (which includes the claims filed by the Appellants) were kept alive for period of six months even after approval of the plan by the Adjudicating Authority and they were to be dealt with by SRA. Admittedly, after the approval of the plan, SRA called for the claims from the Applicants who have again submitted their claims which according to the Appellant has not been verified. From the order of the Adjudicating Authority, it is clear that the claims were filed by the Appellants after the cut-off date. There are no doubt that SRA has to take care of the claims as per Clause 18.4 (v) of the Resolution Plan and whatever amount is entitled to the Appellant to be paid as per Clause 18.4(v) shall be considered and paid by the SRA because the Resolution Plan binds all concerned including the SRA, Appellants and all stakeholders. There are no error in the order of the Adjudicating Authority rejecting the application - the Adjudicating Authority itself has observed that the claims have to be dealt with in accordance with Clause 18.4 (v) of the Resolution Plan - appeal disposed off.

Summary

Issues:
- Challenge to the order of the Adjudicating Authority by the Appellants claiming to be allottees
- Interpretation of Clause 18.4 of the Resolution Plan regarding belated claims by the Appellants

Detailed Analysis:
The judgment pertains to two Appeals filed by the Appellants, who claimed to be allottees, challenging the order of the Adjudicating Authority. The Adjudicating Authority had approved a Resolution Plan, and the Appellants filed their claims subsequent to the plan's approval but before the approval by the Adjudicating Authority. The Appellants sought directions for the allotment of residential units and other reliefs as per their claims. The Resolution Professional opposed the application, citing Clause 18.4 of the Resolution Plan, which allowed for the treatment of belated claimants for a specified period. The Adjudicating Authority dismissed the application, noting the treatment of belated claims in the Resolution Plan.

The Appellants challenged the Adjudicating Authority's order, arguing that they filed their claims before the plan's approval by the Adjudicating Authority, entitling them to the allotted units. They contended that the Resolution Professional should have verified their claims and included their names in the Information Memorandum. The Resolution Plan specified the treatment of claimants who had not filed or had belatedly filed claims, allowing for a period of consideration. The Appellants' claims, filed after the cut-off date, were to be dealt with by the SRA as per Clause 18.4 of the Resolution Plan.

The Tribunal analyzed Clause 18.4 of the Resolution Plan, concluding that the belated claims, including those of the Appellants, were to be kept alive for a specified period after the plan's approval. The SRA was tasked with dealing with such claims, verifying them, and making payments accordingly. The Tribunal found no error in the Adjudicating Authority's decision to reject the Appellants' application, as the Resolution Plan bound all parties involved, including the SRA and the Appellants. The Tribunal disposed of both Appeals, emphasizing the need to adhere to the provisions of Clause 18.4 for dealing with belated claims in the Resolution Plan.