2023 (9) TMI 516 - SUPREME COURT

CIRP - Belated claim pertaining to arbitral Award - appellant’s claim pertaining to an arbitral award, which is in appeal under Section 37 of IBC - to be included at a belated stage i.e. after the resolution plan has been approved by the COC or not - HELD THAT:- It is undisputed that the process followed by respondent no. 1 was not flawed in any manner, except to the extent of whether an endeavour should have been made by respondent no. 1 to locate the liabilities pertaining to the said award from the records of the Corporate Debtor

The appellant is a commercial entity. That they were litigating against the Corporate Debtor is an undoubted fact. We believe that the appellant ought to have been vigilant enough in the aforesaid circumstances to find out whether the Corporate Debtor was undergoing CIRP. The appellant has been deficient on this aspect. The result, of course, is that the appellant to an extent has been left high and dry.

Whether the delay in the filing of claim by the appellant ought to have been condoned by respondent no. 1? - HELD THAT:- Section 15 of the IBC and Regulation 6 of the IBBI Regulations mandate a public announcement of the CIRP through newspapers. This would constitute deemed knowledge on the appellant. In any case, their plea of not being aware of newspaper pronouncements is not one which should be available to a commercial party - the mere fact that the Adjudicating Authority has yet not approved the plan does not imply that the plan can go back and forth, thereby making the CIRP an endless process. This would result in the reopening of the whole issue, particularly as there may be other similar persons who may jump onto the bandwagon.

Thus, it is concluded that the NCLAT’s impugned judgment cannot be faulted to reopen the chapter at the behest of the appellant - appeal dismissed.