Creditors' Delayed Claim Applications Dismissed for Risk to Resolution Plan

The Trade Creditors/Operational Creditors' applications seeking condonation of delay in claim submissions were dismissed by the Tribunal, emphasizing the need for timely submissions and citing potential disruption to the Resolution Plan process. Similarly, the Financial Creditor's application for non-adjudication of their claim was also dismissed due to late submission and the risk of disrupting the ongoing Resolution Plan. All applications were rejected without costs, considering the late submissions and the impact on the Resolution Plan process.

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Issues involved:
Applications filed by Trade Creditors/Operational Creditors seeking condonation of delay in submission of proof of claim and direction to admit their claims. Application filed by Financial Creditor seeking adjudication and admission of claim.

Analysis:
*Trade Creditors/Operational Creditors Applications:*
The Applications sought to condone delays in submitting proof of claim due to lack of awareness about Corporate Insolvency Resolution Process (CIRP) initiation and lockdown restrictions. The Applicants supplied products to the Corporate Debtor and claimed pending payments. The Resolution Professional (RP) argued that the Code mandates specific timelines for claim submissions and that accepting claims indefinitely would defeat the Code's purpose. The Tribunal noted that some Trade Creditors received payments during CIRP and emphasized the need for timely claim submissions. Referring to a Supreme Court judgment, the Tribunal dismissed the Applications, stating they couldn't be condoned at a late stage, especially with a pending Resolution Plan.

*Financial Creditor Application:*
The Financial Creditor claimed non-adjudication of their submitted claim by the RP. The Applicant alleged timely submission of the claim, but the RP disputed receiving it and highlighted the lack of follow-up actions by the Applicant. The RP argued that the Applicant's claim was submitted after the stipulated period, and allowing it now would disrupt the Resolution Plan process. Citing the Supreme Court's stance on post-approval claim admissions, the Tribunal dismissed the Financial Creditor's Application, stating it couldn't be accepted at a belated stage with a pending Resolution Plan.

In conclusion, all Applications were dismissed without costs due to late submissions and potential disruption to the Resolution Plan process.

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