Insolvency and Bankruptcy Code, 2016 – s.62 – The appellants, aggrieved by the failure to deliver possession of their allotted apartment despite substantial consideration being paid, filed an application before the NCLT seeking, inter alia, directions to the Resolution Professional and the Successful Resolution Applicants to execute the conveyance deed in their favour – Applications were opposed by the Resolution Professional and the Successful Resolution Applicant asserting that the only claim filed by the appellants was on 07.02.2020, well after the Committee of Creditors had approved the Resolution Plan on 23.08.2019 – It was argued that the appellants claim was therefore squarely covered by Clause 18.4(xi), which provided for refund of only 50% of the principal amount paid – Correctness:
Held: The admitted and undisputed position remains that the appellants claim was resubmitted on 07.02.2020; that it was duly verified by the Resolution Professional; and that it was incorporated in the published list of creditors dated 30.04.2020 – Once such verification and incorporation occurred, the claim acquired full legal recognition within the CIRP process – The publication of the list of financial creditors is an act in discharge of a statutory duty by the Resolution Professional – It cannot be reduced to a meaningless formality – The Resolution Professional rightly admitted the claim of the Appellants to the extent of Rs.57,56,684/- and reflected it at Serial No.636 in the list of financial creditors – Clause 18.4(xi) of the Resolution Plan is residuary in nature, applying where no claim has been filed, or if filed, not verified by the Resolution Professional, or if verified, not communicated to the Resolution Applicant; such allottees are extended only a reduced benefit of refund of 50% of the principal amount deposited – The appellants case, on admitted facts, does not fall within Clause 18.4(xi) – Their claim was filed, verified, and informed to the Successful Resolution Applicant, as is evidenced by the entry at Serial No. 636 in the list of creditors dated 30.04.2020, admitting their claim to the extent of Rs.57,56,684/- – Once so admitted, their case squarely falls within Clause 18.4(ii) read with Clause 18.4(vi)(a) of the Resolution Plan – Clause 18.4(ii) stipulates that where the claim has been filed and admitted by the Resolution Professional, and the allotment letter issued, the claim shall be honored in full and Clause 18.4(vi)(a) sets out the payment plan for existing allottees, providing for handover of units or execution of conveyance – Accordingly, respondent(s) directed to execute the Conveyance Deed and hand over possession of Apartment to the appellants. [Paras 32, 33, 34, 40]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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