“Failure to consider a claim not only deprives the claimant of his rights, but also deprives the potential resolution applicants to have complete inforbuation required to submit a complete resolution plan. While implementing the resolution plan, if the resolution applicant discovers a liability to a claimant which has not been factored into the plan, the resolution plan will be frustrated.”“Section 220(3) of the Code envisages a penalty which can be three times the amount of loss caused or likely to have been caused to the person concerned. In this case, Anjaria ultimately admitted a claim of Rs 72,09,150. Thus, Rs 72,09,150 is the amount of loss likely to have been caused to the claimant, ignoring for a moment the potential damage to the resolution plan. National Sales’ claims fell in the category of 31 operational creditors for which claims are under ‘dispute’ in the pre-corporate insolvency resolution process.

Source: Indian Express April 14, 2018 22:19 UTC