Rejected CIRP claims cannot be revived in liquidation, and lenders to allottees cannot assert duplicate financial claims.

A claim rejected during CIRP cannot ordinarily be reopened in liquidation unless supported by a new development, and the proper remedy is to challenge the rejection within the prescribed time under the Code. Liquidation is treated as a later stage of insolvency, not an to revive an already rejected claim. The document also states that a lender which disbursed funds to homebuyers, rather than directly to the corporate debtor, cannot assert a duplicate financial claim against the corporate debtor in liquidation or claim status as a secured financial creditor, especially where the allottees' claims have already been admitted.

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Issues: Whether the applicant was entitled to have its claim admitted in liquidation after its claim had already been rejected during CIRP, and whether it could be treated as a secured financial creditor of the corporate debtor.

Analysis: The claim had been rejected by the resolution professional during CIRP, and the proper remedy against that decision was an appeal within the time prescribed under the Code. Liquidation was treated as the second stage of the insolvency process, but not as an occasion to reopen a rejected claim in the absence of any new development. The applicant had disbursed loans to the homebuyers, not directly to the corporate debtor, and the amount raised from the allottees had the commercial effect of borrowing in favour of the allottees, not the bank. The liquidator had already admitted the allottees' claims, and the applicant could not seek to substitute itself for them or assert a duplicate claim.

Conclusion: The applicant was not entitled to admission of its claim in liquidation or to recognition as a secured financial creditor; the rejection of its claim was upheld.

Final Conclusion: The liquidation authority's decision was sustained, and the applicant was left to pursue its remedies, if any, against the allottees in accordance with law.

Ratio Decidendi: A claim rejected in CIRP cannot ordinarily be reopened in liquidation unless supported by a new development, and a lender that disbursed funds to allottees rather than to the corporate debtor cannot assert a duplicate financial claim against the corporate debtor in liquidation.

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