The NCLAT ruled that timely claims for corporate insolvency resolution process (CIRP) cannot be rejected due to minor procedural or technical objections, ensuring access to justice for creditors.
NCLAT's Directive on Procedural Lapses in CIRP Claims
The NCLAT has ruled that timely claims in the Corporate Insolvency Resolution Process (CIRP) cannot be denied based solely on procedural or technical lapses. This ruling addresses the criticality of ensuring that claims made within the allotted time frame are evaluated fairly, promoting accountability among insolvency professionals.
The bench emphasized that diluting the rights of creditors due to minor procedural errors contradicts the core objectives of the Insolvency and Bankruptcy Code, which aims to provide a robust mechanism for resolution and recovery of dues.
This determination advocates for a more inclusive approach, acknowledging that adherence to procedural nuances must not hinder substantive rights established under the law. Creditors must have their claims evaluated on merit, not merely on the technicalities of filing.
Legal practitioners should note the implications of this ruling for submitting claims, stressing the importance of timely action while also remaining cognizant that the substantive rights of clients cannot be overridden by minor procedural mishaps.
Citations
- CIRP Claims (2026) NCLAT Order
