Puneet Kaur Vs K V Developers Private Limited (NCLAT Delhi)
Material Facts
Five appeals were filed by homebuyers of the corporate debtor, K V Developers Private Limited, challenging orders of the Adjudicating Authority rejecting their applications seeking admission of their belated claims as financial creditors. The applications had been rejected on the ground that the claims were filed approximately eight months after the cut-off date specified in Form-A and, in most cases, after the Committee of Creditors (CoC) had approved the Resolution Plan.
The corporate debtor had entered Corporate Insolvency Resolution Process (CIRP) pursuant to an order dated 28.10.2020 under Section 7 of the Insolvency and Bankruptcy Code, 2016. Form-A inviting claims was published on 30.10.2020, requiring claims to be filed by 11.11.2020. The appellants, who had booked flats with the corporate debtor and resided at different places, contended that they could not become aware of the CIRP and consequently filed their claims belatedly along with allotment letters and payment receipts.
Procedural History
The Resolution Professional rejected the belated claims. The Adjudicating Authority dismissed the appellants’ applications seeking directions to admit those claims. The homebuyers filed appeals before the NCLAT challenging those orders.
Legal Issues
The NCLAT considered:
- Whether the Adjudicating Authority rightly rejected the applications seeking admission of belated claims.
- Whether the appellants’ claims stood extinguished after approval of the Resolution Plan by the CoC.
- Whether the Resolution Professional was required to include details of homebuyers reflected in the corporate debtor’s records in the Information Memorandum despite non-filing of claims.
- Whether the Resolution Applicant ought to have addressed such liabilities in the Resolution Plan.
Relevant Statutory Provisions
- Section 7 of the Insolvency and Bankruptcy Code, 2016.
- Section 25A of the Insolvency and Bankruptcy Code, 2016.
- Section 30.
- Section 31(1).
- Regulation 36 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Appellants’ Submissions
