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TMI Blog2023 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... have claimed in their Form D. The IBC contains particular statutory scheme under which Liquidation Process has to be undertaken. The claim of all stakeholders are claims invited by the Liquidator as per the Liquidation Regulation and after receipt of the claims, further steps have to be taken in accordance with the claims received. Permitting any claimant to increase his claim on any ground or reason will not be in accordance with the liquidation scheme as contemplated by the Liquidation Process, Regulations. The statutory scheme provides submission of claim on a liquidation commencement date which is a fixed connotation. When a statute provides for liquidation commencement date as a date up to which claims can be filed and proved, no claim thereafter can be entertained by the Liquidator. The amount of interest which was retained by the Appellant claiming to be interest in addition to the claim as filed by it in Form D till the date of realization of receipt of the sale, cannot be permitted to be retained by the Appellant and the Adjudicating Authority has rightly passed the order allowing application filed by the Liquidator to hand over the additional amount to the Liquidat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e price intimated by the Appellant. Sale of the assets took place on 22.10.2020. Sale proceeds were received by the Appellant. Appellant informed the completion of sale process. Liquidator enquired about the calculation of the amount realized from the sale of the exclusively charged assets. In meeting of the Stakeholders Committee held on 13.09.2021, Appellant informed that it is entitled to retain the interest amount till the date of distribution to recover its debt and not only the amount at the time of filing of the claim in Form-D. Liquidator filed I.A. No. 883 of 2021 seeking following directions: i. Necessary direction upon the Respondent to pay a sum of Rs. 1.84 crores to the Liquidation estate on account of the excess realized moneys as per Section 52(7) of the Code; ii. Necessary direction of interest @12% should be paid by the respondent on the withheld amount of Rs. 1.84 crores from 1st April, 2021 till the date of payment of this amount by the Respondent to the Liquidator Estate. (iv) The Adjudicating Authority after hearing both the parties had allowed the I.A. No. 883 of 2021. Following order has been passed in paragraph 9: For the foregoing reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nswered in this Appeal is as to whether the secured creditor s claim has to be confined to the amount of principal and interest as claimed in Form D filed by the secured creditor or secured creditor in addition to the amount claimed in Form D can also claim further amount in the facts of the present case. 7. The Liquidation Commencement Date in the present case is 21st August, 2018 in pursuance of which Liquidator made a public announcement on 26th August, 2018 and the Appellant filed its claim in Form D on 18.09.2018. 8. The claim which was filed in Form-D by the Appellant has been annexed as Annexure A/5 to the Appeal. Column No. 4 of the Form D deals with total amount of claim. It is useful to extract Column No. 4 of the Form- D which is to the following effect: 1. Name of Financial Creditor DBS Bank Ltd. 4. Total Amount of Claim including any interest. As at the Liquidation Commencement Date and Details of Nature of Claim (Whether Term Loan, Secured, Unsecured) Facility Principal Interest Total (In INR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lds an amount by way of proceeds which is in excess of the debts due to the secured creditor, the secured creditor shall- (a) account to the liquidator for such surplus; and (b) tender to the liquidator any surplus funds received from the enforcement of such secured assets. (8) The amount of insolvency resolution process costs, due from secured creditors who realise their security interests in the manner provided in this section, shall be deducted from the proceeds of any realisation by such secured creditors, and they shall transfer such amounts to the liquidator to be included in the liquidation estate. 12. Learned Counsel for the Appellant has also referred to definition of claim under Section 3(6) and debt under Section 3(11) which are to the following effect: (6) claim means- (a) a right to payment, whether or not such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable, secured or unsecured; (b) right to remedy for breach of contract under any law for the time being in force, if such breach gives rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured, unmatured, disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm for proof of claim by Financial Creditor. Item No. 3 of Form D provides as follows: 3. TOTAL AMOUNT OF CLAIM, INCLUDING ANY INTEREST, AS AT THE LIQUIDATION COMMENCEMENT DATE AND DETAILS OF NATURE OF CLAIM (WHETHER TERM LOAN, SECURED, UNSECURED) PRINCIPAL: INTEREST: TOTAL CLAIM: 17. Form D also clearly mentions that total amount of claim including an interest, As At The Liquidation Commencement Date . The Liquidation Regulation thus clearly contemplated the claim which also includes the interest As At The Liquidation Commencement Date . Liquidation commencement date is a defined term in Section 5(17) to following effect: (17) liquidation commencement date means the date on which proceedings for liquidation commence in accordance with section 33 or section 59, as the case may be; 18. In the present case, Liquidation Commencement Date is a date when the Adjudicating Authority passed the Order of Liquidation. Thus claim has to be with reference to the liquidation commencement date. The statute pegs the claim on a particular date for a purpose and object. When a claim is filed in Form D where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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