Case Note & Summary
The dispute arose from an appeal filed by a homebuyer against an order of the National Company Law Tribunal (NCLT) which dismissed his application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The appellant, Sanjeev Bhatjiwale, claimed to have paid Rs. 36,87,900 for a flat in a real estate project developed by the corporate debtor, but the payment was made in cash to an operational creditor rather than directly to the corporate debtor. The corporate insolvency resolution process (CIRP) was initiated on 17.03.2022, with the last date for claim submission being 14.04.2022, which the appellant missed. The resolution plan was approved on 05.04.2024, after which the appellant filed his claim on 27.11.2024. The NCLT found that the appellant's claim lacked evidence of payment to the corporate debtor and that the resolution professional's role was limited to collating claims based on submitted evidence. The court noted that the appellant's reliance on previous judgments did not establish his status as a financial creditor without proof of disbursement. Consequently, the appeal was dismissed as the resolution plan had already been implemented, and the appellant had no right to challenge it at that stage.
Headnote
A) Insolvency Law - Claim Submission - Validity of Claim Post-Resolution Plan Approval - Insolvency and Bankruptcy Code, 2016, Section 60(5) - The appellant's claim as a homebuyer was dismissed as he failed to file a claim before the resolution plan was approved, and lacked evidence of payment to the corporate debtor. The court held that the resolution professional's duty is limited to collating claims based on submitted evidence, and the absence of proof of disbursement rendered the claim invalid (Paras 10-12).
Issue of Consideration
Whether the appellant's claim as a financial creditor was valid despite not filing a claim before the approval of the resolution plan.
Final Decision
The appeal was dismissed as the appellant failed to establish his claim as a financial creditor due to lack of evidence and late submission of the claim after the resolution plan was approved and implemented.
Law Points
- Insolvency proceedings
- financial creditor status
- claim submission
- burden of proof
- resolution plan approval
