Thursday 15 June 2023

Mr. S. Rajendran, Resolution Professional of PRC International Hotels Private Limited Vs. Jonathan Mouralidarane - If an aggrieved person thereof moves before the Adjudicating Authority and the Adjudicating Authority after going through all the records, comes to a definite conclusion that certain claimed amount is payable, the ‘Resolution Professional’ should not have moved in Appeal, as in any manner, he will not be affected.

NCLAT (2019.10.01) In Mr. S. Rajendran, Resolution Professional of PRC International Hotels Private Limited  Vs. Jonathan Mouralidarane [Company Appeal (AT) (Insolvency) No. 1018 of 2019] held that;

  • If an aggrieved person thereof moves before the Adjudicating Authority and the Adjudicating Authority after going through all the records, comes to a definite conclusion that certain claimed amount is payable, the ‘Resolution Professional’ should not have moved in Appeal, as in any manner, he will not be affected. 


Excerpts of the order; 

01.10.2019 Mr. S. Rajendran, ‘Resolution Professional’ collated the claim of Jonathan Mouralidarane (‘Financial Creditor’) and held that claimed amount as Nil. Against the determination Jonathan Mouralidarane (‘Financial Creditor’) filed application under Section 60(5) before the Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai, which after considering the records and notice to the ‘Resolution Professional’, accepted the total claim. 


2. The ‘Resolution Professional’ has challenged the decision of the aforesaid order dated 31st July, 2019. 


3. Having heard learned Counsel for the Appellant, we are of the opinion that the ‘Resolution Professional’ had no jurisdiction to “determine” the claim as pleaded in the Appeal. He could have only “collated” the claim, based on evidence and the record of the ‘Corporate Debtor’ or as filed by Jonathan Mouralidarane (‘Financial Creditor’). If an aggrieved person thereof moves before the Adjudicating Authority and the Adjudicating Authority after going through all the records, comes to a definite conclusion that certain claimed amount is payable, the ‘Resolution Professional’ should not have moved in Appeal, as in any manner, he will not be affected. 


4. The Appeal is accordingly dismissed. In the facts and circumstances, though we are inclined to impose costs, but on the request of the Counsel for the Appellant, we are not imposing any costs on the Appellant.


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Disclaimer:

The sole purpose of this post is to create awareness on the "IBC - Case Law" and to provide synopsis of the concerned case law, must not be used as a guide for taking or recommending any action or decision. A reader must refer to the full citation of the order & do one's own research and seek professional advice if he intends to take any action or decision in the matters covered in this post.