Status as on- 13/05/2021
Under the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) the concept of ‘Claim’ is when the Corporate Insolvency Resolution Process hereinafter referred to as “CIRP” will commence from the date of appointment of Interim Insolvency Professional. After the appointment of the Interim insolvency Professional as per Section 15(1) of IBC, he shall immediately make a Public announcement within a period of 3 days. The Public announcement should consist of the details of Corporate Debtor, the Register with which the entity is registered and the last date of submission of claims and other details. As per Section 15(1)(C) of IBC and as per Regulation 6(2)(C), the creditors are required to submit their claims within a period of 14 days from the date of appointment of Interim Resolution Professional (hereinafter referred to as “IRP”).
But as per regulation 12(2), the creditors who fails to the submit the claims with proof within 14 days can submit their claims within 90 days from the Insolvency Commencement date as per the amendment of Regulation 12(2). There is a limitation period for submission of claims as the CIRP is a time bound process to resolve the insolvency, protect the creditors, increase the availability of credit and balance interest of all stake holders.
But the legislature in different cases, allowing the creditors to submit their claims until approval of Resolution plan.
The Principal Bench of the NCLT of New Delhi, in the case of M/s Edelweiss Asset Reconstruction company Private Ltd.v/s Adel Landmarks Ltd., it was held that the rejection of claim on the ground of delay is not sustainable because the provisions has been held to be directory it was held that all insolvency Professionals shall make a note of these repeated orders passed by NCLT, clarifying that claim of an applicant like the present one could not be rejected on the ground of delay as the provisions has been held to be directory. Once the resolution process is approved, it will be binding on creditors, corporate debtor, employees, workers, Govt agencies, guarantor etc.
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