Admission of belated claim in insolvency resolution upheld; plan remains subject to admitted statutory dues and addendum permitted

Information memorandum disclosed existence of municipal statutory dues and cautioned prospective resolution applicants to make independent enquiries; despite that, no claim was originally filed. The adjudicating authority admitted a belated claim after it was filed, directing the resolution professional and successful resolution applicant to accept the claim and permit submission of an addendum to the resolution plan; admission was upheld as within the adjudicating authority's discretion because the dues were notified in the information memorandum. The appellate challenge to that admission was dismissed, leaving the plan subject to the admitted statutory dues.

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Issues: Whether the Adjudicating Authority was justified in allowing I.A. No. 2234/2024 and condoning the delay to admit the belated claim of Punjab Small Industries & Export Corporation Ltd., and directing its admission for consequential action in the ongoing CIRP.

Analysis: The Information Memorandum expressly recorded that PSIEC had claims regarding enhancement of land rates and that the Resolution Professional had requested PSIEC to submit claims by specified emails; despite this, no claim was filed within the prescribed period. The Adjudicating Authority examined the position of the leasehold title over the industrial plot, observed that the Corporate Debtor never had absolute ownership and that any defect in title would pass to the SRA, and noted that curing the defect (payment of statutory dues) is necessary to perfect title. Given that the Information Memorandum disclosed the potential claim and prospective resolution applicants were warned to make independent inquiries, the Adjudicating Authority exercised its discretion to condone delay and admit the belated claim, enabling the RP and SRA to submit any necessary addendum to the Resolution Plan for consideration.

Conclusion: The Adjudicating Authority's order allowing the application, condoning the delay, and directing admission of the belated claim is upheld; the appeal is dismissed (in favour of Respondent).

Ratio Decidendi: Where an Information Memorandum discloses a creditor's claim and prospective resolution applicants are put on notice, the Adjudicating Authority may, in the exercise of its discretion, condone delay and admit a belated claim so that the RP and SRA can take consequential steps to address the claim in the resolution process, subject to the legal position that a SRA cannot obtain a better title than the Corporate Debtor possessed.

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