Tribunal Orders RP to Include Applicant's Claim in Creditors' List, Emphasizes Legal Remedies

The tribunal directed the RP to include the applicant's claim of Rs. 9.02 crore in the list of operational creditors, ensuring payment under the resolution plan. The RP's refusal to accept the claim was deemed erroneous, emphasizing the applicant's right to legal remedies. The tribunal upheld the applicant's claim post-approval of the resolution plan, underscoring the importance of justice and fairness in insolvency proceedings.

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Issues Involved:
1. Inclusion of the applicant's claim in the Corporate Insolvency Resolution Process (CIRP).
2. Role and actions of the Resolution Professional (RP) in handling the applicant's claim.
3. Acknowledgment of liability in the corporate debtor's balance sheet.
4. Legal implications of the RP's refusal to accept the applicant's claim.
5. Judicial review and directions regarding the applicant's claim post-approval of the Resolution Plan.

Issue-wise Detailed Analysis:

1. Inclusion of the Applicant's Claim in the CIRP:
The applicant, a joint venture partner, sought inclusion of its claim of Rs. 9.02 crore against the corporate debtor in the CIRP. The applicant argued that the corporate debtor acknowledged this liability in its 54th Annual Report. The RP, however, rejected the claim, stating that the amount was to be adjusted internally within the joint venture.

2. Role and Actions of the Resolution Professional (RP):
The RP's role in the collation of claims was scrutinized. The applicant contended that the RP's actions amounted to adjudication rather than collation, which is against the principles established in Swiss Ribbons v. Union of India. The RP requested additional documentation to substantiate the claim, which the applicant provided, but the RP ultimately rejected the claim, citing internal adjustments within the joint venture.

3. Acknowledgment of Liability in the Corporate Debtor's Balance Sheet:
The applicant relied on the corporate debtor's balance sheet, which acknowledged an outstanding balance of Rs. 907 lakh. The RP argued that balance sheets prepared under compulsion of law do not amount to acknowledgments of liability, citing legal precedents such as Bengal Silk Mills Co. v. Ismail and Kashinath v. New Akot Cotton Ginning and Pressing Co. Ltd.

4. Legal Implications of the RP's Refusal to Accept the Applicant's Claim:
The tribunal found that the RP erred in not making provisions for a contingency regarding the applicant's claim. The RP's acknowledgment of the liability in the books of accounts while functioning as RP was noted. The tribunal emphasized that the applicant diligently pursued legal remedies and should not be left remediless due to the RP's refusal to accept the claim.

5. Judicial Review and Directions Regarding the Applicant's Claim Post-Approval of the Resolution Plan:
The tribunal held that the applicant's claim is maintainable even after the approval of the resolution plan. The RP was directed to draw up final accounts between the corporate debtor and the joint venture and include any payable claim to the applicant in the list of operational creditors. The tribunal underscored that justice must be served, and the applicant should not be left without a remedy.

Conclusion:
The tribunal directed the RP to finalize accounts and include the applicant's claim in the list of operational creditors, ensuring that payments are made under the resolution plan. The application was disposed of with these directions, emphasizing the need for fairness and justice in the insolvency resolution process.

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