M/S Libra Auto & General Finance Ltd vs Rajeev Bhambri. Resolution ...

M/s. Libra Auto & General Finance Ltd. ....Appellant

Vs.

Rajeev Bhambri, ....Respondent RP, Future Colonizers & Construction Limited

Present: For Appellant: Ms. Harsheen M. Palli, Advocate For Respondent: Ms. Aslam Ahmed, Advocate

ORDER

(Hybrid Mode)

19.12.2024 - Heard learned Counsel for the Appellant as well as the

learned Counsel appearing for the Respondent.

2. This Appeal has been filed against the Order dated 12.01.2024 passed by

the Adjudicating Authority in I.A. No.689 of 2023. The I.A. was filed by the

Appellant seeking a direction to admit the claim of the Appellant which was

refused to be admitted by the Resolution Professional. The Adjudicating

Authority by impugned Order has rejected the claim as barred by time. The

submission which has been made by the learned Counsel for the Appellant is

that as per loan agreement dated 14th January, 2013, there was an interest

liability on monthly basis and even if the principal amount was barred by time,

the interest liability will continue and the claim ought to have been admitted.

Learned Counsel for the Respondent opposed the submission of the Appellant 2

and submits that the interest liability cannot run when the principal amount is

itself barred by time. It is submitted that in its loan claim for interest cannot be

accepted which is contrary to the provisions of the Interest Act.

3. We have considered the submissions of the learned Counsel for the parties

and perused the records. In so far as the finding of the Adjudicating Authority

that principal claim was barred by time, we see no reason to interfere with that

finding hence the rejection of the claim of the principal amount is affirmed. In so

far as the question of the admission of the claim towards the interest, the same

issue has not been gone into by the Adjudicating Authority, we are of the view

that in so far as the claim of the Appellant towards the interest is concerned, the

Adjudicating Authority may examine the said claim afresh after hearing both the

parties.

4. We make it clear that we are not expressing any opinion on the merits of

the claim of the either of the parties. It is for the Adjudicating Authority to

consider and take a decision whether any claim towards interest can be admitted

or not. Learned Counsel for the Respondent submits that the Adjudicating

Authority cannot go to the issue of interest, we do not find any substance in the

submission of the learned Counsel for the Respondent. Adjudicating Authority

who is empowered to examine any application under Section 60(5) as is entitled

to examine all issues which arises out of insolvency hence the Adjudicating

Authority has full jurisdiction to consider all issues pertaining to admission of

Comp. App. (AT) (Ins) No.764 of 2024 3

the claim or part of the claim. We thus reject the above submission of the

Respondent.

5. In view of the aforesaid, we dispose of the Appeal by remitting the matter

to the limited extent as indicated above for consideration.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) rs/nn

Comp. App. (AT) (Ins) No.764 of 2024