Tribunal Upholds Liquidator's Decision on Claims Under Insolvency and Bankruptcy Code

The Tribunal upheld the Liquidator's acceptance of claims, finding no procedural errors and compliance with the Insolvency and Bankruptcy Code. It ruled that the Liquidator was justified in verifying and admitting partial amounts of claims based on records and legal opinions. The Tribunal emphasized that the IBC is a comprehensive law and rejected the applicant's plea to await final adjudication of claims in other forums. Additionally, the Tribunal instructed the Liquidator to expedite the liquidation process and actively pursue pending cases, dismissing allegations of non-cooperation by the applicant.

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Issues Involved:
1. Acceptance of claims by the Liquidator.
2. Whether the Liquidator should await the final adjudication of claims pending before other judicial authorities.
3. Allegations of non-cooperation by the applicant.

Detailed Analysis:

Acceptance of Claims by the Liquidator:
The applicant contested the acceptance of claims by Respondent Nos. 2 to 5 (various banks and financial institutions) by the Liquidator, alleging the claims were without legal basis and not reflected in the corporate debtor's books. The Liquidator justified the claims based on records, meetings of the Stakeholders Consultation Committee (SCC), and legal opinions sought. The Liquidator verified claims under Section 38 and 39 of the Insolvency and Bankruptcy Code (IBC), 2016, and related regulations, admitting only partial amounts of the total claims. The Tribunal found no procedural mistakes by the Liquidator and held that the Liquidator's actions were in compliance with the IBC, 2016 and related regulations.

Awaiting Final Adjudication of Claims:
The applicant argued that the Liquidator should await the final adjudication of claims pending before the Debt Recovery Tribunal (DRT) and other judicial authorities before disbursing funds. The Tribunal emphasized that the IBC, 2016 is a complete code with overriding provisions under Section 238, which take precedence over other laws. The Tribunal cited several judgments affirming that proceedings under IBC should not be stalled due to pending cases in other forums. The Tribunal concluded that the liquidation process should not be kept in abeyance and rejected the applicant's prayer to await the final adjudication of claims.

Allegations of Non-Cooperation:
The Liquidator mentioned issues of non-cooperation by the applicant, including pending applications under Section 19(2) of the IBC for non-cooperation in providing necessary documents. The Tribunal directed the Liquidator to expeditiously complete the liquidation proceedings and actively pursue pending cases before the DRT and other judicial authorities.

Conclusion:
The Tribunal dismissed the application, upholding the Liquidator's acceptance of claims and rejecting the request to await final adjudication of claims by other judicial authorities. The Tribunal also directed the Liquidator to complete the liquidation process promptly and pursue pending cases diligently.

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