Adjudicating Authority rejects belated claims, clarifies process for Homebuyers in Resolution Plan

The Adjudicating Authority rejected the belated claims filed by the Appellant(s) after the approval of the Resolution Plan by the CoC, citing legal precedents. The Tribunal clarified that claims do not extinguish upon CoC approval but only after Adjudicating Authority approval. It emphasized the obligation of the Resolution Professional to include Homebuyers' details in the Information Memorandum and directed the Resolution Applicant to prepare an addendum to the Resolution Plan considering Homebuyers' claims. The Tribunal provided specific directions for addressing Homebuyers' claims in the Resolution Plan, ensuring their inclusion in the resolution process.

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Issues Involved:
1. Whether the Adjudicating Authority rightly rejected the IAs filed by the Appellant(s) seeking direction to include their belatedly filed claims.
2. Whether after approval of the Resolution Plan on 20.07.2021 by CoC, the claim of the Appellant(s) stood extinguished.
3. Whether the Resolution Professional was obliged to include the details of Homebuyers as reflected in the records of the Corporate Debtor in the Information Memorandum, even though they did not file their claims within time.
4. Whether the Resolution Applicant ought to have dealt with the Resolution Plan regarding Homebuyers, whose names and claims are reflected in the record of the Corporate Debtor, although they did not file any claim.

Detailed Analysis:

Issue 1: Rejection of Belated Claims
The Adjudicating Authority rejected the IAs filed by the Appellant(s) seeking the inclusion of their claims, which were filed beyond the timeline prescribed in Form-A. The claims were filed on 14.07.2021, 23.07.2021, and 09.11.2021, while the deadline was 11.11.2020. The Tribunal referenced the judgment in *Mukul Kumar vs. M/s RPS Infrastructure* and noted that new claims cannot be entertained once the Resolution Plan has been approved by the CoC and is pending before the Adjudicating Authority. The Tribunal acknowledged that Homebuyers often do not file claims within the prescribed time due to various reasons, but as the law stands, their claims cannot be included after the approval of the Plan by CoC.

Issue 2: Extinguishment of Claims After CoC Approval
The Tribunal concluded that the claims of the Appellant(s) do not extinguish merely upon the CoC's approval of the Resolution Plan. The extinguishment of claims occurs only after the Adjudicating Authority approves the Plan, as per Section 31(1) of the Code and the Supreme Court's ruling in *Ghanashyam Mishra and Sons Private Limited vs. Edelweiss Asset Reconstruction Company Limited*.

Issue 3: Obligation of Resolution Professional Regarding Homebuyers' Details
The Tribunal noted that the Resolution Professional should have included the details of Homebuyers, whose claims were reflected in the records of the Corporate Debtor, in the Information Memorandum. Regulation 36 of CIRP Regulations mandates the inclusion of assets and liabilities, which encompasses the claims of Homebuyers. The Tribunal emphasized that the purpose of CIRP is to ascertain all liabilities of the Corporate Debtor for appropriate resolution, and the exclusion of Homebuyers' claims leads to an incomplete and inequitable resolution process.

Issue 4: Consideration of Homebuyers' Claims in Resolution Plan
The Tribunal referenced the judgment in *Amit Goel vs. Piyush Shelters India Private Ltd.*, where it was held that excluding a significant number of Homebuyers from the Resolution Plan leads to unfair treatment. The Tribunal directed that the Resolution Professional should provide details of Homebuyers' claims to the Resolution Applicant, who should then prepare an addendum to the Resolution Plan. This addendum should be considered by the CoC and subsequently by the Adjudicating Authority.

Conclusion and Directions:
The Tribunal directed the Resolution Professional to submit the details of Homebuyers' claims to the Resolution Applicant within one month. The Resolution Applicant is to prepare an addendum and present it to the CoC within a further month. The CoC should consider the addendum and submit its decision to the Adjudicating Authority, which will then finalize the Resolution Plan considering the addendum. The appeals were disposed of with these directions, ensuring that the claims of Homebuyers are appropriately addressed in the Resolution Plan.

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