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2022 (9) TMI 908 - AT - Insolvency and BankruptcyCIRP - admission of belated claim - financial debt - NCLT allowed the claim and issued direction that the claim filed by the Respondent/State of Karnataka in Form-C, shall be put up by the RP to the CoC for its consideration - mandatory requirement of filing a claim - whether the Appellant has made out any case warranting interference by this Tribunal in the order passed by the Adjudicating Authority? - HELD THAT:- Admittedly, the Corporate Debtor availed a special scheme / incentive from the 1st Respondent and there is no actual disbursement of money. The said fact was not denied by the 1st Respondent herein. The loan was interest free and towards unpaid Value Added Tax for a period of 10 years which is a benefit issued by the Respondent as a promotion policy of the State Government - it is seen that there is no actual disbursement of money that has made to the Corporate Debtor. Further, there is no enhancement of money after a particular time period. It is pertinent to note that the policy / scheme was to enhance / boost industrial production by providing some monitory incentive/concession and not to earn interest and the interest payment in case of default in repayment is purely in the nature of a penalty. It is reiterated that there is no actual disbursement of money. While so, the contention of the Appellant that since there is no interest factor as per the definition of the financial debt, the claim of the 1st Respondent cannot be considered as financial debt. It is apt to note that one of the most crucial principle is time is essence in any resolution process within which the process has to be completed in a time bound manner as contemplated under the Code - this Tribunal find that the claim of the 1st Respondent herein is belated and cannot be considered and the finding of the Adjudicating Authority in directing the RP to place the claim in Form-C before CoC per se illegal and unsustainable accordingly, the point is answered against the 1st Respondent. Whether the RP has power to admit the claims suo-motu? - HELD THAT:- The code prescribes the duties to be performed by the Interim Resolution Professional and the Resolution Professional, as per Section 18 and Section 25 of the I & B Code, 2016. The IBBI (Insolvency Resolution Process for Corporate persons) Regulations 2016, prescribes the procedure to be adopted/followed. As per Chapter IV Regulation 7 of the Regulations, the ‘Claims’ by the Operational Creditor to be submitted with proof to the Interim Resolution Professional in Form-B and as per Regulation 8 of the Regulations, the Financial Creditors shall submit the Claims to the Interim Resolution Professional in Form-C - There is no such provision that the Interim Resolution Professional, shall admit the Claim without filing a Claim Form either in Form-B or in Form-C. Therefore, this Tribunal, is of the considered view, that the Interim Resolution Professional, suo-motu cannot admit the Claims without their being a Claim by the Claimants viz. Operational Creditors, Financial Creditors and Claims by other Creditors. Every Claim shall be submitted by the Claimant with proof. This Tribunal comes to a resultant conclusion that the order passed by the Adjudicating Authority is per se, an illegal and an unjusticiable - Appeal allowed.
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