Department Of State Tax Submits Claim Post Approval Of Resolution Plan By CoC, NCLAT Delhi Upholds Rejection Of Claim
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that a claim submitted post approval of resolution plan by the Committee of Creditors (“CoC”) is not liable to be admitted. Accordingly, the Bench has upheld the rejection...
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that a claim submitted post approval of resolution plan by the Committee of Creditors (“CoC”) is not liable to be admitted. Accordingly, the Bench has upheld the rejection of claim of Department of State Tax, which was submitted post approval of resolution plan by CoC.
Background Facts
Dar Media Pvt. Ltd. (“Corporate Debtor”) was admitted into Corporate Insolvency Resolution Process (“CIRP”) by the NCLT.
The public announcement was made on 15.05.2022 and last date for submission of claim was 26.05.2022. In the meanwhile, the Committee of Creditors (“CoC”) approved a Resolution plan for the Corporate Debtor.
Subsequently, the Department of State Tax (“Appellant”) lodged its claim on 06.02.2023. The Resolution Professional refused to admit the claim on the premise that the application for approval of Resolution Plan has already been filed before the NCLT on 03.02.2023.
The Appellant filed an application (I.A. No.1219 of 2023) before NCLT seeking acceptance of its claim. The NCLT vide order dated 29.08.2023 dismissed the application, while holding that the claim submitted post approval of resolution plan by CoC cannot be admitted.
The Appellant filed an appeal before the NCLAT against the order dated 29.08.2023.
NCLAT Verdict
The Bench held that the NCLT has rightly rejected the application for acceptance claim which has been filed post approval of resolution plan by the CoC.
“The aforesaid clearly indicate that the resolution plan was approved by the CoC prior to 03.02.2023 and the claim which was filed by the Appellant was subsequent to approval of the plan by the CoC. When the plan was already approved by the CoC, we are of the view that no error has been committed by the Resolution Professional in refusing to admit the claim. The Adjudicating Authority has rightly rejected I.A. No.1219 of 2023 filed by the Appellant.”
Appeal is dismissed.
Case title: Department of State Tax v Dar Media Pvt. Ltd. & Anr.
Case No.: Company Appeal (AT) (Insolvency) No. 73 of 2024
Counsel for Appellants: Ms. Shwetal Shepal, Advocate.