2018 (12) TMI 1694 - AT - Insolvency and Bankruptcy

Tribunal dismisses appeal, orders liquidation due to absence of resolution plan within time limit. Liquidator's role emphasized.

Haravtar Singh Arora Versus Punjab National Bank & Ors.

Haravtar Singh Arora Versus Punjab National Bank & Ors. - TMI Issues:Appeal against order of liquidation under Section 33 (2) of the I&B Code for 'M/s James Hotel Ltd.' - Claim of the Promoter not decided by Resolution Professional - Liquidation process and claim verification.The judgment pertains to an appeal filed by the Appellant, who is the Promoter, against an order of liquidation passed by the Adjudicating Authority under Section 33 (2) of the Insolvency and Bankruptcy Code for 'M/s James Hotel Ltd.' The Appellant's counsel argued that the claim of the Promoter was not decided by the Resolution Professional before the liquidation order was passed. However, the Tribunal noted that in the absence of an approved resolution plan, the Adjudicating Authority had no choice but to order liquidation after the completion of the stipulated 270-day period.Regarding the Appellant's claim, the Tribunal highlighted the process during liquidation where the Liquidator is responsible for receiving or collecting claims (Section 38), verifying the claims (Section 39), and deciding on the claims (Section 40). The Tribunal emphasized that the Appellant could make a claim during the liquidation process if it is permissible under the law and has not been previously decided.Ultimately, the appeal was disposed of with the above observations, and no costs were awarded in the matter. The judgment underscores the importance of following the prescribed procedures during the insolvency process, particularly concerning the verification and resolution of claims by the Liquidator.