Tribunal rules on Resolution Professional's jurisdiction & timely action under I&B Code

The Tribunal held that the Resolution Professional lacked jurisdiction to decide creditor claims and directed timely action on approved resolution plans under the I&B Code. The resolution plan for M/s. Star Agro Marine Exports Pvt. Ltd. was approved by the Committee of Creditors, but the Adjudicating Authority was directed to pass the appropriate order within the specified timeframe. The appellants were allowed to file claims under Section 60 and take necessary steps based on the resolution plan outcome or liquidation order. The Tribunal emphasized the importance of timely resolution plan approvals and actions under the I&B Code.

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Issues:
1. Rejection of claim by Resolution Professional
2. Jurisdiction of Resolution Professional to decide creditor claims
3. Approval of resolution plan by Committee of Creditors
4. Delay in passing order under Section 31 of the I&B Code

Analysis:
1. The appellant, M/s. Prasad Gempex, initially filed a claim as a Financial Creditor, which was rejected by the Resolution Professional. Subsequently, the appellant claimed to be an Operational Creditor, but this claim was also rejected. The appellant contended that their Expression of Interest was not considered by the Committee of Creditors, leading to an application being filed before the Adjudicating Authority, which was rejected.

2. The key issue in both appeals was whether the Resolution Professional had the jurisdiction to decide or reject claims of Financial Creditors or Operational Creditors. The Tribunal referred to a previous judgment stating that the Resolution Professional lacks the authority to adjudicate on creditor claims and that after the moratorium period, suits can be filed against the Corporate Debtor.

3. The Tribunal noted that the resolution plan for M/s. Star Agro Marine Exports Pvt. Ltd. had been approved by the Committee of Creditors and placed before the Adjudicating Authority, but no order under Section 31 had been passed within the stipulated time frame. A direction was issued for the Adjudicating Authority to pass the appropriate order on the resolution plan by a specified date.

4. Regarding the delay in passing orders under Section 31 of the I&B Code, the Tribunal directed the Adjudicating Authority to ensure timely action on approved resolution plans. The appellant, M/s. Prasad Gempex, was allowed to file claims as per Section 60 and take appropriate steps based on the outcome of the resolution plan approval or liquidation order.

5. The Tribunal clarified that it did not express any opinion on the claims made by the appellants, M/s. Prasad Gempex and SREI Infrastructure Finance Ltd., or the decisions of the Resolution Professional. Both appeals were disposed of with directions to the Adjudicating Authority, emphasizing the need for timely resolution plan approvals and actions under the I&B Code.

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