Adjudicating Authority Upholds Lower Claim Amount for Workers' Dues

The Adjudicating Authority upheld the Resolution Professional's decision to admit a lower claim amount of Rs.96 lakhs for workers' dues based on the Corporate Debtor's balance sheet. The Appellant's failure to provide supporting documents for the claimed outstanding dues of Rs.26.87 Crores led to the rejection of their challenge. Additionally, the Adjudicating Authority approved the Resolution Plan, which proposed payment of the admitted amount to the workmen. Both appeals were dismissed by the Tribunal.

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Issues:
The judgment involves two main issues: 1. Challenge to the order directing the Resolution Professional to settle the claim of the workers filed by the Appellant, and 2. Approval of the Resolution Plan by the Adjudicating Authority.

Issue 1: Challenge to the order directing the Resolution Professional to settle the claim of the workers:
In this case, the Appellant, 'Engineering Mazdoor Parishad Devas Through Its General Secretary,' challenged the order dated 10.07.2023 passed in IA No.1300 of 2022, seeking direction for the Resolution Professional to consider and settle the workers' claim. The Appellant claimed Rs.12 Crores initially, revised to Rs.26 Crores, but the Resolution Professional only admitted a claim of Rs.96 lakhs. The Appellant argued that the Resolution Professional did not provide a basis for accepting the lower claim amount, despite the Appellant submitting a detailed chart of salary and other dues. The Respondents contended that the Appellant failed to substantiate the claim, and the Resolution Professional based the admitted amount on the Corporate Debtor's balance sheet, reflecting dues of Rs.96,83,497.

The Adjudicating Authority found that the Appellant did not provide supporting documents for the claimed outstanding dues of Rs. 26.87 Crores. It was noted that the Resolution Professional verified the Corporate Debtor's records and found Rs. 96,83,497 due to the workmen, which was admitted. The Adjudicating Authority emphasized that without substantive records, the higher claim amount could not be considered valid. The Appellant argued that they were not given an opportunity to substantiate the claim, but the responsibility lies with the Claimant to provide relevant records. The Resolution Professional's decision to admit the lower claim based on the balance sheet was upheld, and the Adjudicating Authority's rejection of IA No.1300 of 2022 was deemed appropriate.

Issue 2: Approval of the Resolution Plan:
The second order under challenge was the approval of the Resolution Plan by the Adjudicating Authority. The Resolution Plan proposed payment of the admitted amount of Rs.96,83,497 to the workmen. The Tribunal found no grounds to interfere with the Adjudicating Authority's decision to approve the Resolution Plan. Consequently, both Appeals were dismissed by the Tribunal.

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