NCLAT allows timeline for filing claim to creditors who were no party before AA when CIRP plea was admitted jeopardizing their interest

Case Details: Prasun Kumar v. EMM VEE Infrastructures (India) (P.) Ltd. - [2021] 132 taxmann.com 216 (NCLAT- New Delhi)

Judiciary and Counsel Details

• • Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Member
  • Piyush Singh, Aditya Parolia, Ms. Aditi Sinha and Akshay Srivastava, Advs. for the Appellant. Viren Sharma for the Respondent.

Facts of the Case

In the instant case, the financial creditor (Corporation Bank) filed a petition under section 7 of the Insolvency & Bankruptcy Code, 2016 for initiation of the Corporate Insolvency Resolution Process of the Corporate debtor (Emm Vee Infrastructures (India) Pvt. Ltd.) on grounds of its inability to liquidate its financial debt.

As per averments made in the petition the Corporate Debtor approached the applicant bank for grant of a term loan facility of Rs. 25 Crores for developing residential apartments/projects, which was duly considered and sanctioned by the applicant bank. To secure the credit, the Corporate Debtor offered its land and building including propose residential flats to be constructed to create equitable mortgage in favor of financial Creditor.

Further, the Corporate Debtor again approach the financial Creditor for a grant of fresh term loan facility for Rs. 12 Crores which was duly considered. It is also stated that after availing the credit facilities, the Corporate Debtor failed to keep their accounts regularly, and hence the same was classified and declared as NPA as per RBI guidelines.

NCLAT Held

Considering the facts and circumstances of the case, the adjudicating Authority admitted the petition and initiated CIRP of the Respondent Company and further appointed Interim Resolution Professional (IRP) of the Corporate Debtor.

The Appellants who were aggrieved by the order passed by Hon’ble NCLT approached NCLAT and contended that the Appellants were not a party before the Adjudicating Authority and submitted that since they are homebuyers and Financial Creditors (Unsecured) their interest is jeopardized.

After hearing the learned Counsel for the Parties and after perusal of the record and the provisions of the law, NCLAT directed the appellants to file their claims in terms of the aforesaid provisions before the Resolution Professional within two weeks.

The Appellate Tribunal further directed the Resolution Professional to verify the claims in terms of the aforesaid provisions and forward the genuine claims of the Learned Counsel for the Appellants to Adjudicating Authority.

List of Case Referred to

• • Flat Buyers Association Winter Hills-77 v. Umang Realtech (P.) Ltd. [2020] 119 taxmann.com 50 (NCLAT – New Delhi) (para 2).