NCLAT Order dated 10 April 2023
Posted On : April 20, 2023
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, comprising of Justice Rakesh Kumar Jain and Shri Naresh Salecha, while adjudicating an appeal filed in the matter of Madhya Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd. v Jagdish Kumar & Anr, has held that a creditor who neither submit its claim before the IRP/ RP, nor raises any issue during the entire CIRP period, can’t be allowed to challenge the resolution plan which has already been implemented.
The Electricity Department dues had not been paid by Madhya Bharat Phosphate Pvt Ltd (Corporate Debtor) since before the CIRP initiation, but they did not submit any claim either. They challenged the resolution plan approval order stating that the electricity dues can’t be waived off and the resolution plan doesn’t treat financial and operational creditors equally. The NCLAT held that since the electricity department didn’t submit a claim or raise any objection during the CIRP, it is not entitled to any relief.