GNIDA’s Claim as Secured Operational Creditor Cannot Be Re‑Quantified Beyond ₹6.79 Crore Escrow Allocation: NCLAT Holds Resolution Plan Final and Binding
The order underscores that public authorities, even when claiming statutory charge, must act within the procedural confines of the IBC and cannot revisit settled resolution plans once judicial finality is reached.
In a recent ruling the National Company Law Appellate Tribunal (NCLAT) has ruled that the Greater Noida Industrial Development Authority (GNIDA) cannot seek re‑quantification of its claim beyond the ₹ 6.79 crore amount earmarked in the approved resolution plan for Swati Health and Education Services Private Limited. Holding the plan final...
In a recent ruling the National Company Law Appellate Tribunal (NCLAT) has ruled that the Greater Noida Industrial Development Authority (GNIDA) cannot seek re‑quantification of its claim beyond the ₹ 6.79 crore amount earmarked in the approved resolution plan for Swati Health and Education Services Private Limited. Holding the plan final and binding.
The dispute arose after GNIDA challenged the National Company Law Tribunal’s (NCLT) order dated 03 October 2024, which had directed the Authority to accept ₹ 6.79 crore deposited in an escrow account by the Successful Resolution Applicant (SRA),a consortium led by Sandeep Gupta, Shalini Gupta and Anoop Mittal.
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The appellant,Greater Noida Industrial Development Authority,stated that it should be treated as a secured operational creditor, citing the Supreme Court’s decision in Greater Noida Industrial Development Authority v. Prabhjit Singh Soni (2024), which recognized the Authority’s first‑charge rights under Sections 13 and 13‑A of the Uttar Pradesh Industrial Area Development Act, 1976.
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On the other hand the authority argued that its claim of ₹ 21.42 crore partly admitted at ₹ 18.25 crore by the Resolution Professional was wrongly reduced to ₹ 6.79 crore in the approved plan.
the Appellate Tribunal noted that the resolution plan had been approved by the NCLT on 24 August 2023, and GNIDA’s earlier appeal against that order was dismissed on 21 February 2024 due to a 98‑day delay, exceeding the statutory limit under Section 61(2) of the Insolvency and Bankruptcy Code (IBC).
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The bench comprising , judicial member Justice N. Seshasayee and technical members Arun Baroka,Indevar Pandey observed that once the plan approval attained finality, GNIDA could not reopen issues of quantification or creditor classification. It emphasized that the Authority was bound to accept the escrow amount “without prejudice to its contentions,” as directed by the NCLT.
The Tribunal further recorded that the Supreme Court, had already declined to interfere with the NCLAT’s earlier dismissal.
Accordingly, the Appellate Tribunal dismissed GNIDA’s latest appeal ,holding that the resolution plan stands implemented and the Authority must cooperate with the SRA for possession and approvals.
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