AA rightly rejected intervention plea as operational creditor failed to comply with directions for filing claim before IRP

Case Details: RNY Healthcare Services (P.) Ltd. v. Bourn Hall International India (P.) Ltd - [2022] 134 taxmann.com 216 (NCLAT- New Delhi)

Judiciary and Counsel Details

• • Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Member
  • Rakesh Kumar, Ms. Preeti Kashyap and Ankit Sharma, Advs. for the Appellant. 
  • Gautam Singh, (RP) for the Respondent.

Facts of the Case

In the instant case, the appellant (operational creditor) held arbitral award against the respondent (corporate debtor) who was the wholly-owned subsidiary of a Foreign Company namely, M/s TVM Capital Healthcare Partners Ltd. in lieu of unpaid lease rents by the corporate debtor.

The corporate debtor applied section 10. The operational creditor filed an intervention application objecting to the aforesaid application filed by the corporate debtor on the ground that he had an arbitral award which was constituted with the consent of the corporate debtor and in terms of which appellant had been held entitled to a certain amount; and that the application was filed to defeat lawful claims of the various creditors including appellant.

The Adjudicating Authority rejected the intervention application directing the appellant to file its claim before the IRP.

NCLAT Held

While dismissing the intervention application filed by the appellant NCLAT held that the intervenor file a claim before the IRP and the IRP was directed to consider the claim during CIRP. But this direction was not complied with by the appellant and he had not filed any claim.

Taking all these facts and circumstances, it appears that the appellant had not come with a clean hand before the Tribunal and despite directions passed by NCLAT the appellant has not filed a claim before the IRP. Therefore, NCLAT had rightly rejected the application filed by the appellant.

Case Review

• • Bourn Hall International India (P.) Ltd., In re [2022] 134 taxmann.com 216 (NCLT – Chd.) (para 32) affirmed [See Annex].

List of Cases Referred to

• • Neesa Infrastructure Ltd. v. State Bank of India [2021] 127 taxmann.com 225/165 SCL 578 (NCL-AT) (para 13).