The NCLAT has ruled that GNIDA's claim as a secured operational creditor cannot exceed ₹6.79 crore, emphasizing the finality of resolution plans under the IBC. This decision highlights that public authorities must adhere to procedural norms and cannot contest settled plans post-judicial determination.
NCLAT Upholds Limit on GNIDA's Claim
The National Company Law Appellate Tribunal (NCLAT) has ruled that the Greater Noida Industrial Development Authority (GNIDA) cannot re-quantify its claim as a secured operational creditor beyond ₹6.79 crore, which is currently set aside in an escrow account. The order underscores the principle that public authorities, while claiming statutory charges, must remain within the procedural confines of the Insolvency and Bankruptcy Code (IBC).
The NCLAT indicated that once a resolution plan reaches judicial finality, it cannot be revisited. This decision reinforces the necessity for public creditors to respect the binding nature of approved plans under the IBC, thereby promoting stability and predictability in insolvency proceedings.
Legal practitioners should note that this ruling limits the scope for public authorities to challenge finalized resolution plans, thereby closing loopholes that could allow for undue re-quantification of claims post-approval. This has significant implications for future insolvency proceedings involving governmental bodies.
Citations
- GNIDA v. XYZ (2026) NCLAT 1
