Late CIRP Claims Under IBC Cannot Be Entertained After CoC Process Resolution Plan: NCLAT Chennai

The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) on 9 April, held that claims which are not filed and substantiated in accordance with the Insolvency and Bankruptcy Code, 2016 and the Corporate Insolvency Resolution Process (CIRP) Regulations cannot be entertained at an advanced stage of the CIRP, particularly after the resolution plan has been processed by the Committee of Creditors (CoC).

The Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Arun Baroka dismissed the company appeal filed by GK Ispat Pvt. Ltd., an operational creditor of Katerra India Pvt. Ltd., challenging the rejection of its claim by the Resolution Professional and the NCLT. It observed:

“….And for any reason for rejection of the claim, it was the Appellant who was to blame himself for his own inaction and not responding to the process, which was mandatory in nature and particularly when it is governed by the time factor of regulating the entire process of carrying out the CIRP up to the stage of submission of the Resolution Plan, which is strictly governed by the timeframe, which is the essence of the entire provisions of the I & B Code.”

GK Ispat claimed that it supplied construction materials to the corporate debtor between 2016 and 2022 and asserted dues exceeding Rs 16.97 crore.

The Resolution Professional (RP) sought supporting documents to verify the claim through communications, but GK Ispat failed to respond. Consequently, the RP did not admit the claim and excluded the appellant from the list of creditors.

The NCLAT upheld the rejection, noting that the CoC had already approved the resolution plan and it remained pending approval before the Adjudicating Authority. It held that at such an advanced stage of CIRP, the Tribunal cannot entertain unverified and procedurally non-compliant claims.

Accordingly, the Bench dismissed the appeal.