Appellate Tribunal clarifies Resolution Professional's powers, directs prompt action on approved resolution plan

The Appellate Tribunal ruled that the Resolution Professional lacks jurisdiction to decide creditor claims and reiterated the Supreme Court's stance on their powers. It directed the Adjudicating Authority to promptly address the approved resolution plan. The Tribunal emphasized the Authority's limited jurisdiction over pending matters and set aside any attempts to dismiss related proceedings. While upholding most of the plan, it clarified that no decision was made on pending claims under Section 31 of the I&B Code. The appeal was partially allowed, emphasizing adherence to the I&B Code's provisions.

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Issues:
1. Jurisdiction of Resolution Professional to decide creditor claims.
2. Power of Resolution Professional as per Supreme Court judgment.
3. Approval of resolution plan by Committee of Creditors.
4. Adjudicating Authority's jurisdiction over pending matters.
5. Compliance with Section 31 of the I&B Code.

Analysis:

1. The Appellate Tribunal addressed the issue of the Resolution Professional's jurisdiction in deciding creditor claims. Referring to a previous judgment, it was held that the Resolution Professional lacks the authority to adjudicate on claims of creditors, including financial, operational, secured, or unsecured creditors. The Tribunal emphasized that after the moratorium period, a suit or application can be filed against the Corporate Debtor.

2. The Tribunal discussed the Supreme Court's ruling on the Resolution Professional's powers in vetting and verifying claims. The Resolution Professional is tasked with determining the amount of each claim but does not possess adjudicatory powers. In contrast, a Liquidator in liquidation proceedings under the I&B Code is responsible for consolidating and verifying claims, admitting or rejecting them under specific Code sections.

3. In the case at hand, a resolution plan had been approved by the Committee of Creditors but had not been finalized by the Adjudicating Authority within the stipulated time frame. The Tribunal directed the Authority to pass the appropriate order concerning the resolution plan promptly.

4. The Tribunal addressed the Adjudicating Authority's jurisdiction over pending matters, emphasizing that it cannot prohibit aggrieved parties from filing claims before the Court of competent jurisdiction or an appropriate forum, as allowed under Section 60(6) of the I&B Code. An order by the Authority attempting to withdraw or dismiss inquiries, investigations, or proceedings related to the Corporate Debtor was set aside.

5. Finally, the Tribunal set aside the Adjudicating Authority's observation and direction regarding pending inquiries, investigations, and proceedings, as it contradicted the Tribunal's previous decision. The rest of the order approving the plan was upheld. The Tribunal clarified that it did not decide on the Appellant's claim on merit or express any opinion on pending suits or proceedings finalized under Section 31 of the I&B Code.

In conclusion, the Appellate Tribunal allowed the appeal in part, emphasizing the Resolution Professional's limitations, the Authority's jurisdiction, and the need for timely compliance with the I&B Code's provisions.

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