The appellant's claim for Rs. 9.21 crores, arising from the ...

Claim extinguished due to inaction during insolvency resolution process.

Case Laws     IBC

October 24, 2024

The appellant's claim for Rs. 9.21 crores, arising from the termination of an agreement due to non-renewal of a performance bank guarantee, was not considered by the Resolution Professional during the insolvency resolution process. Despite the claim being returned for re-submission, the appellant failed to take any action. The Resolution Plan was approved by the NCLT, extinguishing any remaining claims. Although the appellant's second claim was disbursed by the successful Resolution Applicant, the appellant did not object or challenge the Resolution Plan. The court held that once a Resolution Plan is approved, any remaining claims are deemed extinguished, as per the Supreme Court's ruling in Ghanashyam Mishra. The appellant's inaction resulted in the extinguishment of their claim, and the reliance on Greater Noida Industrial Development Authority was inapplicable, as the appellant did not challenge the Resolution Plan. The appeal was dismissed without any order on costs.

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