Operational Creditor is at liberty to file appropriate legal proceedings to recover his claims if Resolution Plan was withdrawn: NCLAT [Read Order]

Operational Creditor - liberty - legal proceedings - Resolution Plan -NCLAT - Taxscan

The Delhi Bench of National Company Law Appellate Tribunal (NCLAT) has held that the Operational Creditor is at liberty to file appropriate legal proceedings to recover his claims if the Resolution Plan was withdrawn.

The Appellant, Go Airlines (India) Ltd. is an Operational Creditor who after coming to know about the process filed his claim, response to which was sent by the Resolution Professional by email. The Resolution Professional was in the process of verification of the claims when application under Section 12A stood allowed by the Adjudicating Authority.

In view of the sequence of events and facts brought on record that after Committee of Creditors approval for withdrawal of the CIRP proceedings against the Corporate Debtor after settlement between the parties, a claim of the Appellant was submitted.

The coram headed by the Chairperson, Justice Ashok Bhushan and Technical Member, Dr. Ashok Kumar Mishra has held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty to file appropriate legal proceedings to recover his claims.

“We make it clear that we have not expressed any opinion on the merits of the claim of the Appellant and it is for the appropriate forum to consider and take decision in accordance with law,” the NCLAT said.

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