S. Rajendran, Rp Of Prc International ... vs Jonathan Mouralidarane
- CitationCompany Appeal (AT) (Insolvency) No. 1018 of 2019
Ratio decidendi
The rule this decision rests on
A resolution professional has no jurisdiction to determine a financial creditor's claim under the Insolvency and Bankruptcy Code; his function is confined to collating the claim on the basis of the evidence and the corporate debtor's records or the claim as filed. Where the claimant is aggrieved by the resolution professional's treatment of the claim, the remedy lies before the Adjudicating Authority under Section 60(5), which, after examining the records, decides whether and in what amount the claim is payable; the resolution professional therefore has no standing to appeal against the Adjudicating Authority's determination of the claim in those circumstances, as he is not thereby aggrieved.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mr. S. Rajendran, Resolution Professional of PRC International Hotels Private Limited .... Appellant
Vs
Jonathan Mouralidarane .... Respondent
Present: For Appellant: Mr. Rajiv S. Rom, Avrojyoti Chatterjee, Mr. Abhijeet S. Roy and Ms. Jayasree Saha, Advocates.
For Respondent:
ORDER
01.10.2019 Mr. S. Rajendran, 'Resolution Professional' collated the claim of Jonathan Mouralidarane ('Financial Creditor') and held that claimed amount as Nil. Against the determination Jonathan Mouralidarane ('Financial Creditor') filed application under Section 60(5) before the Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai, which after considering the records and notice to the 'Resolution Professional', accepted the total claim.
2. The 'Resolution Professional' has challenged the decision of the aforesaid order dated 31st July, 2019.
3. Having heard learned Counsel for the Appellant, we are of the opinion that the 'Resolution Professional' had no jurisdiction to "determine" the claim as pleaded in the Appeal. He could have only "collated" the claim, based on evidence and the record of the 'Corporate Debtor' or as filed by Jonathan Mouralidarane ('Financial Creditor'). If an aggrieved person thereof moves before the Adjudicating Authority and the Adjudicating Authority after going through all the records, comes to a definite conclusion that certain claimed
Company Appeal (AT) (Insolvency) No. 1018 of 2019 Page 1 of 2 amount is payable, the 'Resolution Professional' should not have moved in Appeal, as in any manner, he will not be affected.
4. The Appeal is accordingly dismissed. In the facts and circumstances, though we are inclined to impose costs, but on the request of the Counsel for the Appellant, we are not imposing any costs on the Appellant.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice A.I.S. Cheema] Member (Judicial)
[Kanthi Narahari] Member (Technical)
Ash/GC
Company Appeal (AT) (Insolvency) No. 1018 of 2019 Page 2 of 2
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