NCLAT Delhi Upheld Rejection of Department of State Tax's Claim Submitted After Approval of Resolution Plan by CoC
The National Company Law Appellate Tribunal, Principal Bench, chaired by Justice Ashok Bhushan, along with Technical Members
By: : Suraj Sinha
Update: 2024-02-10 03:15 GMT
NCLAT Delhi Upheld Rejection of Department of State Tax's Claim Submitted After Approval of Resolution Plan by CoC The National Company Law Appellate Tribunal (NCLAT), Principal Bench, chaired by Justice Ashok Bhushan, along with Technical Members Shri Barun Mitra and Shri Arun Baroka, has ruled that a claim submitted after the approval of a resolution plan by the Committee of Creditors (CoC)...
NCLAT Delhi Upheld Rejection of Department of State Tax's Claim Submitted After Approval of Resolution Plan by CoC
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, chaired by Justice Ashok Bhushan, along with Technical Members Shri Barun Mitra and Shri Arun Baroka, has ruled that a claim submitted after the approval of a resolution plan by the Committee of Creditors (CoC) is not eligible for admission. Consequently, the Bench has affirmed the dismissal of the claim made by the Department of State Tax, which was submitted after the approval of the resolution plan by the CoC.
Corporate Debtor Dar Media Pvt. Ltd. was admitted into the Corporate Insolvency Resolution Process (CIRP) by the NCLT.
The public announcement was issued on May 15, 2022, with the final date for claim submission set for May 26, 2022. During this period, the Committee of Creditors endorsed a resolution plan for the corporate debtor.
Following this, on February 6, 2023, the Appellant Department of State Tax submitted its claim. However, the resolution professional declined to admit the claim, citing that the application for approval of the resolution plan had already been filed with the NCLT on 03rd February 2023.
The appellant submitted an application (I.A. No. 1219 of 2023) to the NCLT, requesting the acceptance of its claim. However, the NCLT, through an order dated August 29, 2023, dismissed the application, maintaining that a claim submitted after the approval of the resolution plan by the CoC cannot be admitted.
The appellant lodged an appeal before the NCLAT challenging the order dated August 29, 2023.
The Bench concluded that the NCLT's decision to reject the application for claim acceptance, which was filed after the approval of the resolution plan by the CoC, was appropriate. Consequently, it found no basis for merit in the appeal and dismissed it accordingly.
Case title: Department of State Tax v. Dar Media Pvt. Ltd. & Anr.