Golden Jubilee Hotels Pvt. Ltd vs Ncc Limited
- CitationCompany Appeal (AT) (Insolvency) No. 516 of 2019
Ratio decidendi
The rule this decision rests on
A Resolution Professional is not an aggrieved party entitled to appeal against an order of the Adjudicating Authority directing admission of an operational creditor's claim, where the order does not affect him in any manner, since he has no jurisdiction to decide the claim. A Committee of Creditors is not empowered to decide whether a claim, in whole or in part, is to be admitted, and a direction from the Committee of Creditors cannot confer on the Resolution Professional a locus to challenge such an order. An argument that an arbitral award has not attained finality is not a ground available to the Resolution Professional to resist admission of a claim founded on that award; the right to challenge the award lies with the debtor.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
M/s. Golden Jubilee Hotels Pvt. Ltd. ...Appellant
Vs.
M/s. NCC Limited ...Respondent
Present: For Appellant: - Mr. Y. Suryanarayan and Mr. Nikhil Jain, Advocates.
O R D E R
15.05.2019─ 'M/s. NCC Limited'- ('Operational Creditor') filed claim
before the 'Resolution Professional' which was partially admitted. Against
the said decision, 'M/s. NCC Limited' moved before the Adjudicating
Authority (National Company Law Tribunal), Hyderabad Bench,
Hyderabad, under Section 60(5) of the Insolvency and Bankruptcy Code,
2016 ("I&B Code" for short) with prayer to set aside the decision of the
'Resolution Professional' dated 15th June, 2018 in not admitting the
claims of the Appellant in full and consequently directing the 'Resolution
Professional' to admit the claim amount of Rs.51,75,95,253/-.
2. The Adjudicating Authority by impugned order dated 3rd April,
2019 taking into consideration the relevant fact that the claim is based
on arbitration award, has directed to admit the claim.
Contd/-......
-2-
3. Prima facie we are of the view that the 'Resolution Professional' is
not aggrieved party as it is not going to affect 'Resolution Professional' in
any manner and particularly when the 'Resolution Professional' has no
jurisdiction to decide the claim.
4. Learned counsel for the Appellant submits that because of
direction of the 'Committee of Creditors', the appeal has been preferred.
However, such submission cannot be appreciated as the 'Committee of
Creditors' is not empowered to decide the issue as to whether a claim in
whole or part is to be admitted or not.
5. It is further submitted that the award has not yet reached its
finality, but that ground cannot be taken by the 'Resolution Professional'
though it is always open to the debtor of the award to challenge the same.
6. In absence of any infirmity, no interference is called for against the
impugned order. The appeal is accordingly dismissed. No costs.
(Justice S.J. Mukhopadhaya) Chairperson
(Justice A.I.S. Cheema) Member(Judicial)
(Kanthi Narahari) Member(Technical) Ar/g Company Appeal (AT) (Insolvency) No. 516 of 2019
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free