Time-Limit on admissibility of claims during CIRP: Where should the line be drawn?

Time-Limit on admissibility of claims during CIRP: Where should the line be drawn? 2021-05-27

The Insolvency and Bankruptcy Code, 2016 ("Code") has thus far acted as a robust piece of legislation, in as much as regulating the insolvency and liquidation of corporate entities is concerned. However, due to the lack of developed jurisprudence, in this regard, various aspects of the Corporate Insolvency Resolution Process ("CIRP") have often been called into question before the Courts and Tribunals, to put such aspects and/or issues at rest. One such contentious issue is regarding the admission of claims during the CIRP by a Resolution Professional ("RP"). In this article, the authors trace the provisions relating to admission of claims during a CIRP, the varying judgments of different judicial fora on the same, the current position of law and conclude by arguing whether the current position of law is holistically the best-suited for all stakeholders.
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