National Company Law Appellate Tribunal Dismisses Application Challenging Corporate Insolvency Resolution Process
The Appellate Tribunal rejected the application saying could not be allowed when the resolution plan had already been approved
The National Company Law Appellate Tribunal (NCLAT) upheld the order passed by the National Company Law Tribunal (NCLT), which dismissed an application filed by the Financial Creditor for rejection of his financial claim.
The Principal Bench of the National Company Law Appellate Tribunal at New Delhi, comprising Justice Jarat Kumar Jain and Dr Ashok Kumar Mishra heard the matter titled Chandraiah Subramaniyan v Digjam Ltd And Ors.
The bench did not go into the factual matrix of this matter but noted that the Appellant was a Financial Creditor whose claim was rejected by the Resolution Professional (RP) and therefore, he had filed an application before the National Company Law Tribunal. The NCLT also had rejected his application as not maintainable. The Appellant – Financial Creditor submitted that the National Company Law Tribunal did not consider the fact that the Appellant had advanced a huge loan to the Corporate Debtor and therefore, it had erroneously rejected his application as not maintainable.
It was admitted by the Appellant – Financial Creditor that he did not file an appeal against the order of the National Company Law Tribunal u/S 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The Appellate Tribunal went through the order of the National Company Law Tribunal and noted that the Resolution Plan had already been approved.
Thus, the Appellate Tribunal agreed with the order of the Tribunal by observing that the Appellant had filed the application challenging the entire 'Corporate Insolvency Resolution Process' (CIRP) which was not permissible as per the provisions of IBC.
The National Company Law Appellate Tribunal, therefore, upheld the order of the National Company Law Tribunal as there was no illegality in the order passed.