NCLAT Holds that Creditors Who Do Not Submit Their Claim or Raise Issues in CIRP Do Not Have Right to Challenge Resolution Plan

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Jul 28, 2023

NCLAT Holds that Creditors Who Do Not Submit Their Claim or Raise Issues in CIRP Do Not Have Right to Challenge Resolution Plan

In Madhya Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd. v. Jagdish Kumar,^[1] the NCLAT held that creditors who fail to submit their claims before the Resolution Professional, and also fail to raise issues during the corporate insolvency resolution period cannot be allowed to challenge the order approving the resolution plan by the adjudicating authority.

[1] Madhya Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd. v. Jagdish Kumar, Company Appeal (AT) (Ins) No. 1113 of 2020.

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