2019 (9) TMI 225 - AT - Insolvency and Bankruptcy

Complaint against Resolution Professional - grievance of the Appellant is that the Resolution Professional wanted to take over the hypothecated goods i.e. the four cranes - HELD THAT - In Swiss Ribbons Pvt. Ltd. Anr. vs. Union of India Ors 2019 (1) TMI 1508 - SUPREME COURT as already held that the Resolution Professional has no jurisdiction to decide the claim of one or other party. This Appellate Tribunal has also held earlier that the Resolution Professional can only collate the claim. Apart from the fact that earlier the same issue was raised and we did not entertain the appeal in view of the fact that nobody appeared on behalf of the Appellant and observed that the Appellant can raise such issue and claim at an appropriate stage i.e. after Moratorium is over, we are not inclined to give any finding for the same prayer in this appeal.

Summary

Issues:
1. Claim of being a 'Financial Creditor' and dispute over hypothecated goods.
2. Challenge against the decision of the 'Resolution Professional' by the Appellant.
3. Jurisdiction of the 'Resolution Professional' and the 'Adjudicating Authority' in deciding claims.
4. Reference to the judgment in "Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors."

Issue 1:
The Appellant claimed to be a 'Financial Creditor' with hypothecated cranes. The grievance arose when the 'Resolution Professional' sought to take over the cranes, leading the Appellant to approach the Appellate Tribunal for relief.

Issue 2:
The Appellant previously challenged an order of the Adjudicating Authority, which was not entertained. The Appellate Tribunal directed the matter to the 'Committee of Creditors' due to a disputed claim. The Respondent disputed the claim shown in the records of the 'Corporate Debtor' and the assets and liabilities presented by the 'Interim Resolution Professional.'

Issue 3:
The Appellate Tribunal clarified that the 'Resolution Professional' or the 'Adjudicating Authority' cannot decide ownership claims over hypothecated goods like cranes. Such disputes are beyond their purview, and the Appellant can raise these issues post the moratorium period.

Issue 4:
Referring to the judgment in "Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors.," the Appellate Tribunal reiterated that the 'Resolution Professional' lacks jurisdiction to decide conflicting claims. The Tribunal emphasized that the 'Resolution Professional' can only compile claims and not adjudicate ownership disputes. Due to the absence of the Appellant during the hearing and the nature of the disputed factual question, the appeal was dismissed without costs.

This judgment underscores the limited role of the 'Resolution Professional' in resolving ownership disputes and highlights the importance of raising such issues post the moratorium period. The decision also emphasizes the need for parties to actively participate in proceedings and present their claims effectively to seek appropriate relief.