Whether the Resolution Professional has jurisdiction to determine” the claim Filed by Financial Creditor

Resolution Process

The National Company Law Appellate Tribunal (NCLAT) in a recent judgment while upholding the Judgment passed by the NCLT, Chennai has held that the ‘Resolution Professional’ have no jurisdiction to “determine” the claim. The Resolution Professional could have only “collated” the claim, based on evidence and the record of the ‘Corporate Debtor’ or as filed by the Financial Creditor.

FACTS

An appeal was preferred by the Resolution Professional of the Corporate Debtor, PRC International Hotels Private Limited (appellant) against an Order 31.07.2019 passed by the Adjudicating Authority i.e. National Company Law Tribunal, Chennai Bench (NCLT).

Mr. S. Rajendran, the Resolution Professional of the Corporate Debtor collated the claim of Jonathan Mouralidarane, one of the Financial Creditor of the Corporate Debtor and held the claimed amount to be Nil. That against the determination of the Claim by the Resolution Professional, Jonathan Mouralidarane, the Financial Creditor preferred an application under Section 60(5) before the Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai. That the NCLT after considering various facts and records at hand, accepted the total claim.

 

OBSERVATIONS OF NCLAT

After hearing the counsels, the Hon’ble NCLAT was of the opinion that the ‘Resolution Professional’ had no jurisdiction to “determine” the claim as pleaded in the Appeal. He could have only “collated” the claim, based on evidence and the record of the ‘Corporate Debtor’ or as filed by Jonathan Mouralidarane, the Financial Creditor, herein in. The Hon’ble NCLAT observed that if an aggrieved person thereof moves before the Adjudicating Authority and the Adjudicating Authority after going through all the records, comes to a definite conclusion that certain claimed amount is payable. The Hon’ble NCLAT was further of the opinion that the Resolution Professional should not have moved in Appeal, as in any manner, he was not an affected party and accordingly the Appeal filed by the Resolution Professional was dismissed.

 

Disclaimer: - This article is for the general information and awareness of its readers, In-case of any legal matter in relation with readers, they are expected to have legal opinion before placing reliance on it. Further it contains completely author's views on the subject and completely unbiased based on authors own experience, study and understanding. 

By: EasyLegalTax Team

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