Appellate Tribunal upholds decision dismissing challenge to NCLT order on lack of credible evidence in CIRP

The Appellate Tribunal upheld the Adjudicating Authority's decision to dismiss the application challenging the order of dismissal by the National Company Law Tribunal Division Bench. The dismissal was based on the lack of credible evidence supporting the claims in the Corporate Debtor's accounts. The Adjudicating Authority's decision was in line with the statutory duties of the Interim Resolution Professional under the Insolvency and Bankruptcy Code 2016. The dismissal was confirmed, emphasizing the importance of adhering to statutory duties and providing credible evidence during the Corporate Insolvency Resolution Process.

---

---

Issues Involved:
- Dismissal of application seeking direction to Resolution Professional
- Admissibility of claims in Corporate Insolvency Resolution Process

Analysis:
The Appellants filed CA (AT) (Ins) No. 581 of 2021 challenging the order of dismissal dated 02.03.2021 by the National Company Law Tribunal Division Bench. The Adjudicating Authority observed that the petitioner had only paid a specific amount to the Corporate Debtor, supported by credible evidence. The Authority noted that the payments claimed were not supported by the Corporate Debtor's accounts and that the ex-directors were fraudulent. The Adjudicating Authority correctly dismissed the application as the Resolution Professional had already admitted a claim after due calculation, which was not arbitrary. The Adjudicating Authority's decision was based on the fact that the claims were not maintainable due to lack of supporting evidence in the Corporate Debtor's accounts.

Furthermore, the duties of the Interim Resolution Professional as per Section 18 of the I & B Code 2016 were highlighted, emphasizing the collection of information on the corporate debtor's assets, finances, and operations. The Professional is required to receive and collate all claims submitted by creditors and verify entries in the Corporate Debtor's books of accounts. The Adjudicating Authority's decision was in line with these statutory duties, ensuring proper handling of claims during the insolvency resolution process.

In conclusion, the Appellate Tribunal upheld the Adjudicating Authority's decision to dismiss the application, stating that it lacked merit. The dismissal of CA (AT) (Ins) No. 581 of 2021 was confirmed, with no costs imposed, and all related Interlocutory Applications were closed. The judgment emphasized the importance of adhering to statutory duties and providing credible evidence to support claims during the Corporate Insolvency Resolution Process.

---