# In the matter of Uttam Strips Ltd. (IB) 137 (ND)-2018

> NCLT judgment dated 2019-04-04. Citation: TCN-2019-NCLT-04156. The case involves CA 226/2018 filed by an Operational Creditor seeking reimbursement of initial…

- **Court:** NCLT
- **Order date:** 4 Apr 2019
- **Citation:** TCN-2019-NCLT-04156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uttam-strips-ltd-ib-137-nd-2018-22e58cf4

## Summary

### Background

The case involves CA 226/2018 filed by an Operational Creditor seeking reimbursement of initial expenses. The Resolution Plan has been submitted to the Bench for consideration. Claimants argue their claims were rejected for being filed belatedly. Counsel for the RP argues that Regulation 12 of the CIR process prevents considering claims after the resolution plan's approval by the COC.

## Facts

An Operational Creditor filed CA 226/2018 seeking reimbursement of initial expenses. The Resolution Plan has been submitted for consideration. Claimants argue their claims were rejected for being filed late. The RP's counsel argues that claims cannot be considered after the resolution plan's approval by the COC, citing Regulation 12 of the CIR process. The court notes that the claims were filed before 270 days of the CIR period or before the Resolution Plan was approved. CA 54/2019 is also pending adjudication.

## Issues and analysis

### Issue 1: Whether the Operational Creditor should be …

**Ratio:** The operational creditor is entitled to reimbursement of initial expenses as part of the

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**Reasoning:** The court directed that the said amount was to be reimbursed to the operational creditor

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**Interpretation:** This ensures that operational creditors are not unduly burdened by the initial

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**Application:** The court's direction applies directly to the Operational Creditor in CA

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Respondents:** Power2SME Pvt.…; Krishnendu…

## Timeline

- **2018-01-01 — Filing of CA…**: CA 226/2018 filed by the Operational…
- **2019-04-04 — Hearing…**: Hearing before the New Delhi Bench of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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