2023 (9) TMI 1261 - AT - Insolvency and Bankruptcy

Appeal Dismissed for Delayed Challenge in Insolvency Resolution Process

V.K. Abdul Rahim Versus Jasin Jose, Resolution Professional / Liquidator

V.K. Abdul Rahim Versus Jasin Jose, Resolution Professional / Liquidator - TMI Issues Involved:The issues involved in the judgment include dismissal of applications challenging the procedure adopted in Corporate Insolvency Resolution Process, refusal to admit a claim by the Liquidator, delay in filing the claim, interpretation of regulations regarding submission of claims, and the conduct of the Appellant during the insolvency proceedings.Dismissal of Applications Challenging CIR Process:The Appellant, a Suspended Managing Director, appealed against the Impugned Order dated 21.04.2022, which dismissed the applications challenging the procedure adopted by the IRP/RP and Liquidator in the Corporate Insolvency Resolution Process. The Tribunal observed that the Appellant's intention seemed to be delaying the proceedings by approaching various forums, including the Supreme Court, without success. The Tribunal noted the lack of cooperation from the Suspended Directors in the CIR Process and emphasized that the Appellant, being a shareholder, was not entitled to claim relief against the CoC or the conduct of the CIRP. The Tribunal concluded that the Appellant's challenges were belated, and the dismissal of the appeal was justified.Refusal to Admit Claim by Liquidator:The Appellant submitted a claim after a significant delay, citing reasons such as pursuing remedies against the Order of Liquidation. The Liquidator refused to admit the claim, stating that the last date for submission had passed, and the Appellant, as the Managing Director, was aware of the proceedings. The Tribunal found the delay in submitting the claim unacceptable, emphasizing that the IBC is a time-bound process. The Tribunal noted the Appellant's efforts to derail the process and upheld the decision of the Adjudicating Authority to reject the claim.Interpretation of Regulations on Submission of Claims:Regulation 16 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016 requires claims to be submitted before the last date mentioned in the public announcement. The Tribunal highlighted the importance of timely submission of claims and rejected the Appellant's argument that challenging the Liquidation Order prevented timely claim submission. The Tribunal emphasized that the Appellant's delay of 390 days in submitting the claim was not justified and went against the provisions of the IBC.Conduct of the Appellant During Insolvency Proceedings:The Tribunal considered the Appellant's conduct during the insolvency proceedings, noting actions such as registering the Publication of Form B on the Company's Website and requesting the Liquidator not to publish it until the case is disposed of. The Tribunal highlighted communication between the Liquidator and the Appellant regarding the rejection of the claim due to the elapsed time since the Liquidation Order. The Tribunal concluded that the Appellant's challenges and conduct did not warrant interference with the Adjudicating Authority's decision.Conclusion:In conclusion, the Tribunal dismissed the appeal, emphasizing the time-bound nature of the IBC process and the importance of adhering to submission deadlines. The Tribunal found no substantial grounds to interfere with the Adjudicating Authority's decision and closed the connected pending application. No costs were awarded in the judgment.