International Asset Reconstruction ... vs The Administrator Of The Specified ...
- CitationCompany Appeal (AT) (Insolvency)No. 763 of 2019
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority retains power under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 to decide a claim that the Resolution Professional has no jurisdiction to entertain, and it may do so at any time before the plan is approved, even where the claim was not filed in time for the Committee of Creditors' approval of the plan, where the claimant is an entity acting on behalf of a number of investors.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: International Asset Reconstruction Company Pvt. Ltd. .....Appellant Vs. The Administrator of the Specified Undertaking of the Unit Trust of India(SUUTI) & Ors. ......Respondents
O R D E R
26.07.2019 - The Appellant is one of the 'Financial Creditor' whose
grievance is that the Adjudicating Authority admitted application of claim filed
by Respondent No. 1 - 'The Administrator of the Specified Undertaking of the
Unit Trust of India', after approval of the Plan by the 'Committee of Creditors'.
On hearing, learned counsel for the Appellant, we are of the view that if for
one or the other reason before the approval of the plan by the Adjudicating
Authority, it is brought to the notice of the Adjudicating Authority that a party
could not file its claim, that too, like 'The Administrator of the Specified
Undertaking of the Unit Trust of India', who has an entity on behalf of a number of
investors, it is always open to the Adjudicating Authority to decide the claim u/s
60(5) of the Insolvency & Bankruptcy Code, 2016 ('I&B' Code, for short), if
'Resolution Professional' (RP) has no jurisdiction to entertain the same.
...contd.
2
For the said reason, we are not inclined to interfere with the impugned order
dated 5th July, 2019. The appeal is dismissed. No costs.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice A. I. S. Cheema] Member (Judicial)
[Kanthi Narahari] Member (Technical)
ss/sk
Company Appeal (AT) (Insolvency)No. 763 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