NCLAT New Delhi: Responsbility Lies On The Claimant To Provide Necessary Details To Substantiate Its Claim
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra Dash (Technical Member), dismissed an application filed in Engineering Mazdoor Parishad Devas vs. Teena Saraswat Pandey, Resolution Professional of S & H Gears Pvt. Ltd. seeking consideration and settling the claim of...
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra Dash (Technical Member), dismissed an application filed in Engineering Mazdoor Parishad Devas vs. Teena Saraswat Pandey, Resolution Professional of S & H Gears Pvt. Ltd. seeking consideration and settling the claim of the Engineering Mazdoor Parishad Devas workers (Appellant) by the Resolution Professional (“RP”). Further, the Appellant has also challenged the order allowing the application for the approval of the Resolution Plan.
The NCLAT held that it is the Claimant's responsibility to provide all necessary records to support their claim. The Appellate Tribunal pointed out that there were no documents submitted to substantiate the workmen's claim.
Background Facts:
The Appellant filed a claim in the Corporate Insolvency Resolution Process of the Corporate Debtor of Rs.12 Crores which was revised to Rs. 26 Crores subsequently but the RP only admitted the claim of Rs.96 Lakhs not in accordance with law. The Appellant filed an Application seeking the settling of the claim by the RP. The RP has not given any basis and reason for accepting the claim of Rs.96 Lakhs whereas a chart was given by the Appellant where the claim for salary and other dues was mentioned.
The RP contended that the Appellant did not substantiate its claim and the RP on the basis of the balance sheet of the Corporate Debtor admitted the claim of Rs.96 Lakhs which was reflected as dues of the workmen in the balance sheet of the Corporate Debtor.
The Appellant had argued that it was not given an opportunity nor heard to substantiate its claim.
NCLAT Verdict:
The NCLAT dismissed the appeals and stated that it is the Claimant's responsibility to provide all necessary records to support their claim. It also held that the RP committed no error in accepting the claim of Rs.96 lakhs based on the Corporate Debtor's balance sheet. The Appellate Tribunal pointed out that there were no documents submitted to substantiate the workmen's claim.
For the other appeal, the NCLAT emphasized that there is no reason to interfere with the approved Resolution Plan, which includes the entire admitted claim of the workmen amounting to Rs.96 lakhs.
Case Title: Engineering Mazdoor Parishad Devas Through Its General Secretary vs. Teena Saraswat Pandey, Resolution Professional of S & H Gears Pvt. Ltd.
Case No.: Comp. App. (AT) (Ins.) No. 1200 of 2023
Counsel for Respondent: Mr. Sumesh Dhawan, Ms. Vatsala Kak, Mr. Shaurya Shyam, and Mr. Raghav Dembla, Advocates