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Showing 101 to 120 of 1464 Records
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2021 (10) TMI 1365
Suit for recovery of money due on a promissory note - defence of the defendant is that the defendant has neither borrowed any amount nor executed any promissory note in favour of the plaintiff - forgery of signature of defendant - HELD THAT:- As of now, there is no mechanism or scientific method to findout the age of the writing or ink. But the learned Additional District Judge, without considering the non-availability of any such mechanism, by simply observing that the defendant has to be given an opportunity to prove his defence and no prejudice would be caused to the plaintiff, allowed the petition. Hence, this Court has no hesitation to hold that the impugned order is not good in law and the same is liable to be set aside.
Considering the facts and circumstances of the case and also the fact that this Court has already fixed the time limit for disposal of the suit and the same was not complied with, as the proceedings were subsequently stayed by this Court in the present revision, this Court is of the view that necessary directions are to be issued for the early disposal of the suit.
The Civil Revision Petition is allowed.
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2021 (10) TMI 1364
Seeking grant of Bail - non-existent transactions - Section 132(1)(b) & (c) of the CGST Act, 2017 R/w Section 132(1)(i) and Sub-Section (5) of the Act - HELD THAT:- As per the charge-sheet and the evidence collected by the Department, it has turned out that fake entities were created and no goods were in fact transported from one entity to another and fake bills were generated, hence, there are no change in the circumstances so as to entertain the third bail application.
The third bail application is accordingly rejected.
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2021 (10) TMI 1363
Seeking grant of bail - offence under Sections 132(1)(b)(c) of of the Central Goods and Services Tax Act, 2017 - HELD THAT:- No ground is made out for entertaining the second bail application as there is no change in circumstance necessitating entertaining the second bail application.
The Criminal Misc. Second Bail Application is dismissed.
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2021 (10) TMI 1362
Rectification of mistake u/s 254 - Omission on part of ITAT to decide the grounds - HELD THAT:- We notice that the Tribunal has inadvertently omitted to decide ground Nos. 2 & 3 of the assessee’s appeal for the assessment year 2012-13 and ground No.2 of the assessee appeal for assessment year 2013-14, which, is mistake apparent from record within the meaning of section 254(2) of the Act. Hence, we allow these Misc. Applications and recall the order [2021 (5) TMI 1041 - ITAT CHANDIGARH] for a limited purpose of adjudicating ground No 2&3 of the assessee’s appeal pertaining to AY 2012-13 and ground No 2 of the assessee’s appeal for the AY 2013-14 after hearing the assessee on theses afresh. Misc. Applications are allowed.
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2021 (10) TMI 1361
Seeking appointment of Insolvency Resolution Professional - HELD THAT:- The applicant has approached the IRP who has accorded his consent to accept his appointment as the IRP. Accordingly, the application is allowed.
Seeking his replacement from the position of Interim Resolution Profession for the CIRP of the Corporate Debtor - HELD HAT:- Application has becomes infructuous and disposed of accordingly.
List main company petition on 06.12.2021.
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2021 (10) TMI 1360
Deduction u/s 35(2AB) - Appellant not entitled to deduction u/s 35(2AB) to the extent the expenses eligible for deduction under the said provision pertained to a unit entitled for deduction under Section 10B - HC held insofar as it pertains to the finding that the assessee is not entitled to claim deduction under Section 35(2AB) of the Act is hereby quashed - HELD THAT:- Issue notice.
Dasti, in addition, is permitted.
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2021 (10) TMI 1359
Dishonor of Cheque - insufficient funds - existing and enforceable debt or not - rebuttal of statutory presumption under section 139 of NI Act - burden to prove - HELD THAT:- The burden on the accused is to make out a probable defence. The accused need not step into the witness box or adduce direct evidence. It would suffice if the accused is in a position to create a reasonable doubt that the version of the complainant is false. In the factual matrix, the accused has more than succeeded in rebutting the presumption.
Except a bald statement in the complaint that the disputed cheque was issued towards payment of unpaid amount, there is no disclosure whatsoever as to when was the coal supplied, what was the quantity of the coal supplied, what was the amount received from the accused and what amount is unpaid. The complainant did not adduce any documentary evidence to show that he supplied coal to the accused, at any point in time. While the complainant asserted that the outstanding is reflected in the balance sheet, the balance sheet is not produced on record - in cases where the allegation is that certain goods were supplied and the cheque was issued towards payment of the consideration, it would be hazardous to convict only on the basis of the presumption under section 139 of the Act in the absence of any material, and which material ordinarily would be expected to be in the complainant's possession and control, to show that goods were as a fact supplied to the accused.
While dealing with an appeal against acquittal, the Court must bear in mind that the presumption of innocence is only strengthened by the acquittal and if two reasonable conclusions are possible on the basis of the evidence on record, the Appellate Court should be slow to reverse a judgment of acquittal.
Appeal dismissed.
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2021 (10) TMI 1358
TP Adjustment - Comparable selection - HELD THAT:- Companies functionally dissimilar with that of assessee software development service segment need to be deselected from final list. Also companies having huge turnovers need to be deselected.
ALP adjustment pertaining to interest on receivables - HELD THAT:- As directed the TPO to allow credit period as per agreement between assessee and its AEs - if it turned out that no such period was specified, the credit period would be 90 days only - HELD THAT:- There is hardly any dispute that the learned lower authorities have gone by SBI short term deposit rates which is in the nature of a loan or cash transaction involving domestic deposits rather than LIBOR rate in international transactions, involving the very business segment.
Coming to the Revenue’s argument that this tribunal has already directed the TPO to go by the agreement between an assessee and its AEs, we quote Technimont ICB Pvt. Ltd [2013 (9) TMI 595 - ITAT MUMBAI] and Sabic Innovative Plastic India Ltd. [2013 (9) TMI 596 - ITAT AHMEDABAD] that an AE could not be adopted as a tested party since lacking uncontrolled comparable transactions. As in CIT Vs B R Constructions [1992 (6) TMI 13 - ANDHRA PRADESH HIGH COURT] holds that a co-ordinate bench decision not taking into consideration the relevant law and facts; as the case may be, is not a binding precedent. We therefore accept the assessee’s instant ground for this precise reason alone and delete the impugned ALP adjustment.
Management and consultancy fee involving ALP adjustments - HELD THAT:- We are of the view that the learned TPO needs to re-examine the entire issue in light of the assessee’s foregoing submissions accordingly pin-pointing; prima-facie, a cost to cost reimbursement arrangement between itself, its AE and the ultimate payee M/s.KPMG qua the services in issue. We further wish to quote here the foregoing judicial procedents decision that the benefit test also not to be applied whilst determining “NIL Arm’s Length Price” on the ground that the taxpayer had not in fact derived any benefit from the international transactions in issue. The assessee shall also be at liberty to file its additional evidence; if any, in consequential proceedings as well.
Allow education cess paid as a deduction - HELD THAT:- Revenue on the other hand quotes Section 40(a)(ii) of the Act that a “cess” very much forms part of the clinching statutory expression “tax” employed therein. And that it is too late now for the assessee to make the impugned claim once the same had not been recorded in the corresponding books of account as well. We find no merit in the Revenue’s foregoing arguments in light of Sesa Goa Ltd, [2020 (3) TMI 347 - BOMBAY HIGH COURT], Chambal Fertilizers and Chemicals Ltd [2018 (10) TMI 589 - RAJASTHAN HIGH COURT] holding the impugned cess as an allowable deduction in light of CBDT’s circular dt.18-05-1967 that education cess is not included in “tax” u/s.40(a)(ii) of the Act. We therefore direct the AO to frame consequential computation as per law.
Foreign tax payment as a deduction - allowance of foreign tax credit claim u/s.91(1) - HELD THAT:- Section 91 of the Act is a specific provision dealing with foreign tax credit to be granted in case of taxes paid in the specified countries i.e. except Pakistan which comes under the latter sub-section 2 thereof. If we go by the assessee’s analogy that foreign tax credit to the specified extent u/s.91(1) “of a sum calculated on such doubly taxed income at the Indian rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are equal” is allowable for the purpose of granting credit and the remaining component is to be granted deduction under Chapter-IV of the Act, the same would render the former specific provision itself as otiose going contrary to “generalia specialism non derogant” which means that a specific provision prevails over the general one. We thus adopt stricter interpretation and conclude whatever is the assessee’s unallowable foreign tax credit claim u/s.91(1) since exceeding the specified limit, would not be entitled for business expenditure u/s.37.The assessee fails in this ground.
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2021 (10) TMI 1357
Payment of excessive price for purchase of sugarcane - HELD THAT:- AO would allow deduction for the price paid under clause 3 of the Sugar Cane (Control) Order, 1966 and then determine the component of distribution of profit embedded in the price paid under clause 5A, by considering the statement of accounts, balance sheet and other relevant material supplied to the State Government for the purpose of deciding/fixing the final price/additional purchase price/SAP under this clause. The amount relatable to the profit component or sharing of profit/distribution of profit paid by the assessee, which would be appropriation of income, will not be allowed as deduction, while the remaining amount, being a charge against the income, will be considered as deductible expenditure. At this stage, it is made clear that the distribution of profits can only be qua the payments made to the members. In so far as the nonmembers are concerned, the case will be considered afresh by the AO by applying the provisions of section 40A(2) of the Act, as has been held by the Hon’ble Supreme Court Tasgaon Taluka S.S.K. Ltd. [2019 (3) TMI 321 - SUPREME COURT]
Needless to say, the assessee will be allowed a reasonable opportunity of hearing by the AO in such fresh determination of the issue.
Disallowance on account of sugar sold to members at concessional rate - In our considered opinion, it would be just and fair if the impugned order on this score is set aside and the matter is restored to the file of AO, instead of to the CIT(A), for fresh consideration as to whether the difference between the average price of sugar sold in the market and that sold to members at concessional rate is appropriation of profit or not, in the light of the directions given by the Hon’ble Supreme Court in the case of Krishna Sahakari Sakhar Karkhana Limited[2012 (11) TMI 669 - SUPREME COURT ] - Restoration to the AO is necessitated because, following the judgment of the Hon’ble Apex Court in the case of Tasgaon Taluka S.S.K. Ltd. (supra), we have remitted the issue of payment of excessive price to the file of AO, and as such, the instant issue cannot be sent to ld. CIT(A) as it would amount to simultaneously sending one part of the same assessment order to the AO and other to the CIT(A), which is not appropriate.
Disallowance on account of VSI Contribution - assessee made provision for Vasantdada Sugar Institute (VSI) contribution and claimed deduction u/s.35(1) - HELD THAT:- Ground decided in favour of the assessee.
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2021 (10) TMI 1356
Demand of property tax in respect of two buildings owned by the petitioner - CHAD building - College building - eligibility for exemption in terms of Coimbatore City Municipal Corporation Act, 1981 - hospital comes within the description of a 'charitable hospital' or not - HELD THAT:- Reports for the periods 2018-2019 and 2019-2020 have been circulated along with statement of costs and statements indicating the break-up between the charitable work and the revenue generating work that the institution is engaged in. Orders of assessment as well as Certificate under Section 80 G of the Income Tax Act, 1961 have also been placed on record - Suffice it to say that the argument advanced by the respondents, that only an institution which has no revenue at all can be a charitable institution, is untenable as it ignores ground realities. Assuming that an institution was bereft of all revenue sources, such institution would itself be in a need of charity, and cannot hope to do charity.
Though the grant of exemption is one that should be considered by the original authority and not a question in which the Court would be inclined to intervene under Article 226, in this case, it is believed that such intervention is justified. It is not in dispute that the hospital has been granted the benefit of exemption continuously from 1933. It is also not in dispute that the CHAD is part of the hospital and is engaged in charity and medical relief, both in the hospital and, as an extension to the neighbouring committees as well - there are no justification whatsoever to exclude the CHAD from the ambit of exemption from property tax and quash that portion of the impugned order denying such relief.
Claim of exemption qua the buildings comprised in the educational institution - HELD THAT:- The amendment does overlook the charitable nature of the activity undertaken by a teaching college. It perhaps was intended to address prosperous educational institutions run on profit motive. A teaching institution, by definition, focuses on the dispensation of education in the arena of medicine, both subjects constituting public duty. The fee structure in the college is stated to a sum of Rs. 3000/- per annum only and no other charges are collected - The expenditure is wholly met from out of the fee collection from the hospital, which also treats a section of the society gratuitously. Thus, a distinction must be made between a teaching hospital which is service oriented and other Educational institutions where the dominant object is profit.
Thus, it stands now, the petitioner is not entitled to exemption from property tax in regard to the college buildings. The impugned order is upheld to this extent - petition allowed in part.
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2021 (10) TMI 1355
Reopening of assessment u/s 147 - whether reassessment was made on mere change of opinion and the income was subjected to double taxation? - HELD THAT:- Re-assessment was made u/s 148 of the Income Tax Act upon notice being issued upon the petitioner. Although the petitioner raised various objections to the re-assessment notice, no revised return was filed by the petitioner, which according to the petitioner, was due to technical glitches. However, in course of re-assessment, no such issue was canvassed before assessing officer. Be that as it may, the assessing officer considered the objections raised by the petitioner-assessee and passed impugned assessment order. There is an alternative appellate remedy available before the CIT (Appeals).
We are of the opinion, none of the aforesaid exceptions arise in the facts of the present case. Petitioner-assessee was given repeated notices and adequate opportunity to represent his case before the assessing officer. Whether the Assessing Officer effectively dealt with the objections or not, are questions falling within the jurisdiction of the appellate authority and does not affect the inherent jurisdiction of the Tribunal. Thus, the order does not suffer either from inherent lack of jurisdiction or breach of principles of natural justice. Hence, we are not inclined to interfere with the order in exercise of writ jurisdiction.
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2021 (10) TMI 1354
Classification of devices - Echo Link - Link Amp - Auto - Flex - eligibility for exemption under Notification No. 57/2017-Cus., dated 30-6-2017, as amended - HELD THAT:- The device Echo Link is intended to upgrade the existing stereo system of the user with high fidelity streaming music and Alexa. The use of this device would enable a user to stream his preferred sound throughout the home or chosen rooms/areas. It is important to appreciate that Echo Link is to be connected to Echo speaker (input device) as well as multiple existing speakers (output devices). The primary utility of the device is to upgrade any stereo system with high-fidelity streaming music and Alexa, control music selection, sound and playback with compatible Echo device or the Alexa app; connect to stereo (any input audio device) and group with other supported Echo devices to play music throughout the home; provide multiple digital and analog inputs and outputs compatible with existing stereo equipment.
All the four Echo family devices under consideration in the present proceedings are voice command devices with multiple functions, including answering questions, playing music, reading newspaper/audio-books, providing traffic, weather and other real-time information and controlling smart devices. These devices respond to the names “Alexa”, “Amazon”, “Computer” or “Echo” as wake up words. These Echo family devices are capable of voice interaction, music playback, making to-do lists, setting alarms, etc. - these four devices merit classification under sub-heading 8517 62 90.
The specifications of Echo Auto and Echo Flex, as submitted by the applicant make it clear that they are not MIMO products. In view of this, it is held that these two devices would be eligible for the said exemption. Since Echo Link and Echo Link Amp are MIMO products, they are not eligible for the subject exemption. During the hearing held on 28-9-2021, the applicant has fairly conceded that they no longer are seeking exemption in respect of these two devices.
The Audio Receiver (Echo Link) having Model No. SXP16E, Audio Transceiver and Amplifier (Echo Link Amp) having Model No. K9Y29E, Media Transmission Device (Echo Auto) having Model No. BP39CN, and Echo Flex having Model No. C77A68 merit classification under sub-heading 8517 62 90 of the First Schedule to the Customs Tariff Act, 1975; and also that the devices Echo Auto and Echo Flex are eligible for exemption extended under the Notification No. 57/2017-Customs, dated 30-6-2017; as amended.
Application disposed off.
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2021 (10) TMI 1353
Validity of assessment - Non granting sufficient time to Petitioner - violative of the principles of natural justice - HELD THAT:- As regards liberty prayed for to file a fresh Affidavit, we are not inclined to grant that liberty. This is because in our view, it would make no difference to the allegations contained in the Petition.
With the Assistance of Dr. Shivaram and Mr. Suresh Kumar, we have gone through the Petition and the documents annexed thereto. We have also considered the Assessment Order. It is true that between 20/05/2021 and 25/05/2021 there was a lockdown in Mumbai and 22/05/2021 and 23/05/2021 were holidays. Therefore, even with a superhuman effort, Petitioner would not have been able to file the huge number of documents called for in the short period granted and therefore, passing of the Assessment Order without granting sufficient time to Petitioner is certainly violative of the principles of natural justice. We are inclined to quash the Assessment Order dated 25/05/2021 which we hereby do. The matter is remanded for de novo consideration.
Dr. Shivaram states that response to the notice issued on 20/05/2021 will be filed within 2 weeks from today. Statement accepted. AO may consider the submissions made by Petitioner along with the documents and pass such order as he deems fit in accordance with law after giving a personal hearing to the Petitioner in accordance with the Rules.
We also clarify that we have not made any observation on the merits of the case. The time between 25/05/2021 till today is excluded for the purpose of calculating time limit for passing re-Assessment Order. Petition disposed with no order as to costs.
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2021 (10) TMI 1352
Maintainability of application - initiation of CIRP - Financial Service Provider/Srei Infrastructure Finance Limited (SIFL) - SIFL has committed defaults of significant amount in relation to the financial debt availed by it from various financial creditors - Existence of Debt and dispute or not - time limitation - HELD THAT:- The documents placed on records prima facie prove that there has been a default and that the sum involved in such default is in excess of the threshold limit of one crore rupees prescribed at present under section 4(1) of the Code. Moreover, since the sanction letters are in the year 2018 onwards and date of default from November 2021, the petition is not hit by limitation.
This is a fit case for initiation proceedings under section 227 read with rule 5 of the Rules ibid, since the debt in question qualifies as financial debt under section 5(8) read with section 3(11) of the Code - The Petition made by the Reserve Bank of India is complete in all respects as required by law. It clearly shows that the Respondent/FSP is in default of a debt due and payable, and the default is more than the minimum amount as stipulated under section 4(1) of the Code. Therefore, the default stands established and there is no reason to deny the admission of the Petition.
Petition admitted - moratorium declared.
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2021 (10) TMI 1351
TP Adjustment - comparable selection - application of turnover filter - HELD THAT:- Companies functionally comparable cannot be excluded only on the basis of high turnover - Companies whose turnover in the current year is more than ₹ 200 Crores should be excluded from the list of comparable companies - RPT filter has to be applied adopting the threshold limit of 15%.Companies functionally dissimilar with that of assessee need to be deselected.
Merely pointing out that there is a substantial increase in value of intangible assets, the Assessee cannot seek to exclude company from the list of comparable companies, unless the Assessee is able to show that the presence of intangibles is owing to factors which can affect the functional comparability of company with the Assessee.
ALP determination - as per assessee international transaction in question would be at Arm's length when benchmarked with its transaction with unrelated parties on the basis of the internal TNMM - HELD THAT:- We find that this issue has been raised by the Assessee for the first time before the Tribunal. The Revenue authorities did not have any occasion to examine this issue and therefore we deem it fit and proper to remand this issue to the AO/TPO for consideration afresh and in the light of the relevant applicable statutory provisions.
Determination of ALP by construing the delayed realization of receivable by the Assessee from its AE as a separate international transaction and determining ALP of such delayed receivables - HELD THAT:- Non-charging or under- charging of interest on the excess period of credit allowed to the AE, for the realization of invoices amounts to an international transaction and the ALP of such an international transaction is required to be determined. In view of the above observations. the reliance placed by the ld. counsel for the assessee on earlier decisions cannot be accepted. Similarly, Considering the above discussion, it is held that deferred trade receivable constitutes international transaction.
Having concluded that deferred trade receivables constitute international transaction, we come to the computation of the ALP of the international transaction of 'debt arising during the course of business.' This has two ingredients, viz., the amount on which interest should be charged and the arm's length rate at which the interest should be charged.
We are of the view that the issue with regard to determination of ALP in respect of the international transaction of giving extended credit period for receivables should be directed to be examined afresh by the AO/TPO on the guidelines laid down in the decision referred to in the earlier paragraph, after affording Assessee opportunity of being heard. As held in the aforesaid decision the prime lending rate should not be considered and this reasoning will apply to adopting short term deposit interest rate offered by State Bank of India (SBI) also. The rate of interest would be on the basis of the currency in which the loan is to be repaid. We hold and direct accordingly. All issues on determination of ALP of the transaction are kept open.
Appeal by the Assessee is partly allowed.
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2021 (10) TMI 1350
Time Limitation - HELD THAT:- It is seen that the agreement in question is dated 26th April, 2016 with the time for completion being 11 months. Clearly, therefore, any claim now raised arising from the said contract would be time barred. It is, therefore, not possible to accede to the prayer of the Petitioner.
The writ petition is dismissed.
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2021 (10) TMI 1349
TP Adjustment - assessee’s contention that even if the comparable Uncontrolled Price Method is applied for determining the arm's length price then the comparability analysis should consider an adjustment of at least 50% vis–a–vis brokerage charged to independent clients - HELD THAT:- As the issue for our adjudication has been decided by the Co–ordinate Bench of the Tribunal in assessee’s own case for the assessment year 2002–03 wherein the issue has been decided against the Revenue and in favour of the assessee.
Comparability analysis on the basis of overseas and domestic independent clients - The issue for our adjudication has been decided by the Co–ordinate Bench of the Tribunal, Mumbai Bench, in assessee’s own case for the assessment year 2002–03, wherein the issue has been decided against the Revenue and in favour of the assessee.
Disallowance of remuneration under section 40A(2) - HELD THAT:- As decided in own case payment made to employee is within the limits prescribed by Companies Act and satisfies the test of reasonableness. We have noted that the AO, while making the disallowance disregarded the approval granted by central government under the statutory provisions of Companies Act. The AO made addition / disallowance without considering the qualification, experience and reasonableness with regard to his past and position in the field of capital market.
Disallowance of notional interest on deposits u/s 40A(2) - HELD THAT:- As in assessee’s own case for the assessment year 2002–03, in assessee’s own case for the assessment year wherein the issue has been decided against the Revenue held held that where assessee paid lease rent to a group company in respect of wind farm taken on lease, since lease rent was fixed in accordance with formula provided by Indian Renewable Energy Development, a Government of India Company, impugned disallowance made by Assessing Officer under section 40A(2)(b) was to be set aside.
Disallowance pertaining to adjustment under the head payment of overseas support fees - HELD THAT:- Issue decided in favour of assessee as relying on own case.
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2021 (10) TMI 1348
Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - time limitation - acknowledgement under Section 18 of the Limitation Act, 1963 - HELD THAT:- It was held in Asset Reconstruction Company (India) Limited [2021 (4) TMI 753 - SUPREME COURT] that There can be no doubt whatsoever that the appellant has been completely remiss and deficient in pleading acknowledgement of liability on the facts of this case. However, given the staggering amount allegedly due from the respondents, we afford one further opportunity to the appellant to amend its pleadings so as to incorporate what is stated in the written submissions filed by it before NCLAT, subject to costs of Rs 1,00,000 to be paid by the appellant to the respondents within a period of four weeks from today.
Subject to the appellant being put to terms, the course adopted by this Court in Asset Reconstruction Company (India) Limited [2021 (4) TMI 753 - SUPREME COURT] should be followed. Accordingly, the appeal is allowed and the impugned order is set aside. The appeal is remanded back and will be restored back to file.
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2021 (10) TMI 1347
Freezing of Bank Accounts of petitioner - HELD THAT:- In order to facilitate fund availability, in view of the plea of the accused that only 67 accounts out of 241 are de-freezed, the other accounts are to be de-freezed as already directed for the benefit of the investors - Considering the efforts being put in by learned ASG, the FSL to set up a dedicated team to assist the learned ASG in this behalf and if necessary, that can be through a mode of outsourcing.
List on 19.01.2022.
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2021 (10) TMI 1346
Seeking impleadment of applicant as respondents - verification of claims of creditors - it is submitted that although the applicants are not added as a party in those applications, but during the course of hearing, several misleading statements were made by the Ld. Counsels for the ACRE and ITSL about the applicants - HELD THAT:- The conjoint reading of Section 18 & 25 of IBC shows that the duty of the IRP is to receive and collate all the claims submitted by creditors to him, pursuant to the public announcement made under sections 13 and 15 of IBC, 2016. Whereas the duty of the RP is to maintain an updated list of claims, which means, if the IRP has received and collated all the claims submitted by the creditors to him those claims can be updated by the RP as the duty cast upon the RP under Section 25(2)(e) of IBC, 2016, is to maintain an updated list of claims - When the different classes of creditors have submitted their claims as well as the proof of claims as referred to in Regulation 12 of IBBI Regulations, then the IRP or the RP is authorized under the law to verify the every claim within seven days from the last date of receipt of the claim, and thereupon maintain a list of creditors containing names of creditors along with the amount claimed by them and the amount of their claims admitted.
It is further seen that as per Regulation 13 (2) of the IBBI Regulations, the IRP or the RP shall make a list of creditors available for inspection by the persons, who have submitted proofs of claim or by the members, partners, directors and guarantors of the corporate debtor - Since, the authorized representative is appointed under Section 21(6A) of the IBC, 2016 and his rights and duties are defined under Section 25A of IBC, 2016 referred, it is observed that under Section 21(6A)(b), the authorized representative is appointed, if the class of creditors exceeds the number specified under the law.
Thus, the authorized representative shall have no role in receipt or verification of claims of creditors of the class, he represents. If the authorized representative shall have no role in receipt or verification of claims of creditors of the class, he represents, then the association or the allottees who come under the class of creditors, shall also have no role in receipts or verification of claims of creditors rather it is the IRP or the RP, who is to decide the claims submitted by the creditors.
The ACRE and ITSL have filed the applications against the rejection of their claims by the IRP - the applicants in both the IAs under consideration are not a necessary party to the respective proceedings.
Application dismissed.
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