Tribunal Grants PNB's Claim Appeal, CoC to Reconsider Plan

The Tribunal allowed the appeal by Punjab National Bank (PNB) regarding the delay in submitting the proof of claim, condoning the delay and directing the Resolution Professional to consider PNB's claim. The CoC was instructed to reconsider the resolution plan with PNB's revised claim, to be completed within 45 days from the judgment date, without altering the plan except for PNB's claim.

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Issues Involved:
1. Whether the delay in submission of the proof of claim by Punjab National Bank (PNB) should be condoned.
2. Whether the Committee of Creditors (CoC) should reconsider the resolution plan after including PNB's claim.

Detailed Analysis:

Issue 1: Delay in Submission of Proof of Claim by PNB
The appeal by PNB challenges the order dated 14.12.2021 by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench), which directed the Resolution Professional (RP) to complete the voting process on the resolution plan based on the CoC's composition as of 14.12.2021. PNB argued that its claim against the Corporate Debtor, M/s. Zenith Finesse India Private Limited, was not considered, which would have altered the CoC's composition and voting share.

PNB initially filed its claim on 05.03.2020, which was rejected by the RP on 18.03.2021 for being late. PNB obtained an order on 08.04.2021 from the Adjudicating Authority condoning the delay. However, the RP rejected the proof of claim submitted on 20.04.2021, as the 270-day CIRP period had expired on 12.04.2021. PNB then filed I.A. No. 1078 of 2021 to direct the RP to verify its claim and include it in the CoC.

The Tribunal noted that the Adjudicating Authority was aware of PNB's pending application but still directed the CoC to consider the resolution plan without deciding on PNB's application. The Tribunal found sufficient reason for PNB to be aggrieved, as its rightful position in the CoC was not considered, affecting its voting share.

Issue 2: Reconsideration of the Resolution Plan by the CoC
The Tribunal examined the prayers in I.A. No. 1078 of 2021, which sought the RP to accept PNB's claim by condoning the unintentional delay. The Tribunal noted that the RP had rejected PNB's claim due to the expiration of the 270-day CIRP period. However, the Adjudicating Authority had excluded a total of 245 days from the CIRP period for other reasons, including litigation and the second wave of COVID-19.

The Tribunal found it surprising that while the Adjudicating Authority granted exclusions for other reasons, it did not consider PNB's application for condonation of delay. The Tribunal emphasized that natural justice principles and the objectives of the IBC should apply equally to all parties. The Tribunal concluded that the delay in PNB's submission should be condoned, especially given the Adjudicating Authority's exclusion of 245 days from the CIRP period.

Conclusion and Directions
The Tribunal condoned the delay in PNB's submission of proof of claim and directed the RP to consider the documents submitted by PNB. The RP was instructed to revise PNB's claim if the documents were found to be valid. This process was to be completed within 15 days. The CoC was then directed to consider the revised claim for payment through the resolution plan by the Successful Resolution Applicant. The entire exercise, including the consideration of PNB's documents, was to be completed within 45 days from the date of the judgment.

The appeal was allowed, and the resolution plan would stand revised only concerning PNB's revised claim. There was no order as to costs.

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