DBS Bank India Ltd vs. Kuldeep Verma - (NATIONAL COMPANY LAW APPELLATE TRIBUNAL) (06 Feb 2023)

When a statute provides for liquidation commencement date as a date up to which claims can be filed and proved, no claim thereafter can be entertained by the Liquidator

MANU/NL/0118/2023

Insolvency

Present Appeal has been filed challenging the Order passed by the National Company Law Tribunal, in application filed by the Liquidator which Application has been allowed by the Adjudicating Authority directing the Appellant to make the payment of 1.84 Crores to the liquidation estate along with interest at the rate of 6%.

Liquidation Process Regulations provides for procedure and manner in which Liquidation Process begins claim are received and distribution of the amount take place to various stakeholders. Regulation 12 of Liquidation Process, Regulations, 2016 provides for public announcement by the Liquidator calling upon the stakeholders to submit their claims or update their claims submitted during the Corporate Insolvency Resolution Process. Regulation 16(2) requires to prove his claim as on the Liquidation Commencement Date. Claims by the Financial Creditor has to be filed in Form D as per Regulation 18.

The IBC contains particular statutory scheme under which Liquidation Process has to be undertaken. The claim of all stakeholders are claims invited by the Liquidator as per the Liquidation Regulation and after receipt of the claims, further steps have to be taken in accordance with the claims received. Permitting any claimant to increase his claim on any ground or reason will not be in accordance with the liquidation scheme as contemplated by the Liquidation Process, Regulations.

Statutory scheme provides submission of claim on a liquidation commencement date which is a fixed connotation. When a statute provides for liquidation commencement date as a date up to which claims can be filed and proved, no claim thereafter can be entertained by the Liquidator. The amount of interest which was retained by the Appellant claiming to be interest in addition to the claim as filed by it in Form D till the date of realization of receipt of the sale, cannot be permitted to be retained by the Appellant and the Adjudicating Authority has rightly passed the order allowing application filed by the Liquidator to hand over the additional amount to the Liquidator. Learned Counsel for the Appellant submits that out of Rs. 1.84 Crores, amount of Rs. 20 Lakhs have already been paid. There is no error in the order passed by the Adjudicating Authority allowing an Application filed by the Liquidator. There is no merit in the Appeal. Appeal dismissed.

Tags : PAYMENT DIRECTION LEGALITY