M/S Baroda Freight Carrier Through Its ... vs Ashish Chhawchharia Erstwhile ...
- CitationCompany Appeal (AT) (Ins) No. 1857 of 2025
Ratio decidendi
The rule this decision rests on
Pre-CIRP dues owed by a corporate debtor to a creditor remain operational debt and are to be claimed by the creditor as an Operational Creditor; a payment made by the Resolution Professional after the commencement of CIRP does not, by that fact alone, alter the character of such pre-CIRP dues or convert them into CIRP costs or post-CIRP dues. Where the creditor has not filed a claim for such pre-CIRP dues, it has no entitlement to have them treated as post-CIRP claims on account of the Resolution Professional's post-commencement payment; any claim for contingent liability under the approved resolution plan lies with the Successful Resolution Applicant, which may decide on it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Ins) No. 1857 of 2025 & I.A. No. 7235 of 2025 IN THE MATTER OF: Baroda Freight Carrier ...Appellants Versus Ashish Chhawcharia, ...Respondents Erstwhile RP of Sintex BAPL Ltd.
Present: For Appellant : Mr. Shubham Paliwal and Ms. Komal Bihani, Advocates. For Respondents : Mr. Himanshu Satija and Mr. Anshul Rao, Advocates.
ORDER
(Hybrid Mode)
01.04.2026: This appeal is preferred by a certain transport operator
who claims that its dues which the corporate debtor was liable prior to the
commencement of the CIRP.
2. The facts fall within a very narrow campus the appellant, has stated
alia, is in transportation business and he has been extending its services to
the corporate debtor well prior to the commencement of CIRP. Indeed, on
18.12.2020, CIRP commenced. Prior to the commencement of the corporate
debtor, the corporate debtor was liable to pay a sum of Rs.7,07,000/- for
certain services rendered by the appellant between 07.10.2020 & 16.10.2020.
After the commencement of CIRP, on 29.12.2020 the RP had pay aforesaid
Rs.7,07,000/-. Subsequently the appellant had also made a claim for the
services he has provided during the CIRP period as part of the CIRP cost. Even though the RP originally rejected the post CIRP claim later it was resort
and that is no more issue.
3. As on 18.12.2020 total pre-CIRP dues was Rs.21,08,000/-. The issue
that now engages this Tribunal is how to deal with Rs.7,07,000/- which RP
had pay after the commencement of CIRP but towards the dues payable to the
appellant prior to the commencement of CIRP.
4. Heard both sides.
5. As to any claim for any dues prior to commencement of CIRP the same
will fall the category of operational debt and the appellant necessarily ought
to have a made a claim of the Operational Creditor. The mere fact the
Resolution Professional has made the payment post CIRP does not ipso facto
can alter the character of the pre-CIRP dues and make it equivalent to post
CIRP dues. Very evidently, the appellant has not made any claim for the said
sum. Here the Ld. Counsel for the respondents circulated the judgment of
Hon'ble Supreme Court in Civil Appeal No. 2216 of 2017 to the authority to
support the aforesaid view. Ld. Counsel has submitted that the plan has been
fully implemented/ approved and the SRA now taken over the Management.
6. If at all any continent fund is made available for contingent liability in
the resolution plan, the appellant may approach to the SRA and the SRA is
free to decide to make his decision.
Appeal is disposed of accordingly.
[Justice N Seshasayee] Member (Judicial)
[Barun Mitra] Member (Technical) harleen/MD 2 of 2 Company Appeal (AT) (Ins) No. 1857 of 2025
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