No Bar On Operational Creditor To Recover Claims If Claims Were Not Entertained In The Resolution Process: NCLAT
The NCLAT Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Ashok Kumar Mishra, Technical Member in Go Airlines (India) Ltd. v. Sovika Aviation Services Pvt. Ltd. &Ors. held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty...
The NCLAT Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Ashok Kumar Mishra, Technical Member in Go Airlines (India) Ltd. v. Sovika Aviation Services Pvt. Ltd. &Ors. held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty to file appropriate legal proceedings to recover his claims.
The Appellant filed an appeal against the order of the Adjudicating Authority- NCLT, Mumbai Bench which allowed the application by the Resolution Professional under Section 12A for withdrawal of CIRP.
The Appellant was an Operational Creditor, who after coming to know about the process, filed its claims before the Resolution Professional. While the Resolution Professional was in the process of verification of claims, the application u/s 12A for withdrawal of the Resolution Plan was allowed by the Adjudicating Authority, as the Committee of Creditors in its meeting had resolved to withdraw CIRP against the Corporate Debtor after a settlement was arrived at between the parties.
The Tribunal upheld the order passed by the Adjudicating Authority on the ground that since the Appellant/ Operational Creditor submitted its claim after the Committee of Creditors in its meeting had approved the decision to withdraw the CIRP proceedings, his claims had not been entertained in the resolution process. Thus, he is at liberty to file appropriate legal proceedings and seek remedies available to him under law.