Case Note & Summary
The appeal was filed by the Resolution Professional of Raguleela Builders Private Limited against an order of the Adjudicating Authority that admitted a claim of ₹ 5,20,22,000/- made by Mysore Petro Chemicals Limited. The respondent had entered into an agreement for the purchase of a commercial unit, which was not delivered as per the agreement. After a series of legal proceedings, including a complaint to the Real Estate Regulatory Authority (RERA) and an appeal to the Real Estate Regulatory Appellate Authority (RERAA), the RERAA ordered the corporate debtor to pay the respondent. The appellant contended that the claim was based on an order passed during the moratorium period, rendering it void. The respondent argued that the claim crystallized only after the RERAA's order and that they had duly notified the RP about their claim. The court analyzed the implications of the moratorium under Section 14 of the Insolvency and Bankruptcy Code, concluding that the claim based on the RERAA order was not maintainable as it created a new liability during the moratorium. The court directed the RP to verify any payments made by the respondent and include their claim accordingly.
Headnote
A) Insolvency Law - Maintainability of Claims - Claims during Moratorium - Insolvency and Bankruptcy Code, 2016, Section 14 - The court held that any claim based on an order passed during the moratorium period is not maintainable as it creates a new liability against the corporate debtor, which is prohibited under Section 14. The claim based on the RERAA order was deemed invalid due to the moratorium in place during the CIRP process (Paras 6-9).
Issue of Consideration
Whether the claim of the respondent is maintainable given the moratorium under the Insolvency and Bankruptcy Code.
Final Decision
The appeal was disposed of with a direction to the Resolution Professional to verify if the respondent had made any payment of consideration to the corporate debtor and to include its claim.
Law Points
- Insolvency and Bankruptcy Code
- moratorium
- claims admission
- RERA
- CIRP
- statutory obligations
