Western Coalfields Limited Vs Sai Wardha Power Generation Limited (NCLAT Chennai)
The present company appeal before the National Company Law Appellate Tribunal, Chennai arose from proceedings initiated under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Regulation 39(4) of the CIRP Regulations, 2016. The resolution plan in question had been approved by the Adjudicating Authority (NCLT) on October 19, 2019 in IA No. 703/2019, filed in CP (IB) No. 275/7/HDB/2018.
The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor pursuant to a petition filed by a financial creditor and an operational creditor/debenture trustee. The petition was admitted on November 9, 2018, leading to appointment of an Interim Resolution Professional. The appellant, an operational creditor, submitted its claim in Form B on February 5, 2019 under Regulation 8 of the CIRP Regulations. This claim was rejected by the Resolution Professional without reasons.
Aggrieved by the rejection, the appellant filed an application under Section 60(5) of the IBC. The Adjudicating Authority held that the IBC does not recognise “contingent claims” as a separate category and directed the Resolution Professional to treat the appellant’s claim as an ordinary claim, subject to the outcome of pending litigations before various forums, including the Supreme Court. The claim was thus required to be considered on merits rather than as a contingent claim.
