Insolvency claims of depositors must be assessed under the statutory framework, without being governed by earlier interim orders.

Where a financial service provider enters the insolvency resolution process, depositor claims must be considered within the statutory framework by the Committee of Creditors and the Administrator, with the depositors treated as a class of creditors through an authorised representative. Earlier interim orders of the High Court and the Debts Recovery Tribunal were directed not to influence that consideration. The Court also found no basis to interfere with the Committee of Creditors' decision permitting lending operations, leaving the depositors to pursue their contentions before the Committee, the Administrator, and, if needed, the National Company Law Tribunal.

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Issues: Whether the claims of the depositors were to be considered by the Committee of Creditors and the Administrator uninfluenced by the earlier interim orders, and whether interference was warranted with the decision permitting the corporate debtor to commence lending operations.

Analysis: The proceedings were taking place in the backdrop of initiation of the corporate insolvency resolution process against the financial service provider, the commencement of moratorium under the Insolvency and Bankruptcy Code, 2016, and the appointment of an Administrator. The depositors had been included as a class of creditors, were to be represented through an authorized representative, and their claims were to be placed before the Committee of Creditors and the Administrator in accordance with the insolvency framework. In that setting, the earlier interim orders of the High Court and the Debts Recovery Tribunal were directed not to influence the consideration of the depositors' claims. The Court also declined to interfere with the decision of the Committee of Creditors permitting lending operations, leaving the depositors to raise all available contentions before the Committee of Creditors, the Administrator, and, if necessary, the National Company Law Tribunal.

Conclusion: The claims of the depositors were to be considered independently of the earlier interim orders, and no interference was called for with the decision permitting lending operations.

Final Conclusion: The appeals did not result in any restraint on the insolvency process or on the decision to continue lending operations, and the depositors' grievances were left to be worked out within the statutory insolvency mechanism.

Ratio Decidendi: Once a financial service provider is admitted to the insolvency regime, claims of affected creditors must be pursued through the statutory insolvency framework and prior interim orders should not control that process unless the Court finds a separate basis for interference.

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