Q: Can a creditor withdraw his claim ?

Ans: The legislature in different cases, allowing the Creditors to submit their claims until approval of Resolution plan.

The Principal Bench of the NCLT of New Delhi inom the case of M/s Edelweiss Asset Reconstruction company Private ltd Vs Adel Landmarks Ltd, it was held that the rejection of claim on the ground of delay is not sustainable because the provisions has been held to be directory. It was held that all insolvency Professionals shall make a note of these repeated orders passed by NCLT clarifying that claim of an applicant like the present and one could not be rejected on the ground of delay as the provisions has been held to be directory.

Because once the resolution process is approved, it will bind on Creditors, Corporate debtor, employees, workers, Govt agencies, guarantor etc. The question is the Creditor who has not submitted any claim is not a stake holder and hence the resolution plan whether it is binding him or not is to be examined.

Before amendment as per regulation 12(2) of CIRP “ A Creditor who failed to submit proof of claim within the time stipulated in the public announcement may submit such proof to the interim resolution Professional or the Resolution Professional as the case may be till the approval of the resolution plan by the committee.

A Creditor may withdraw or vary his claim as per section 38 (5) of the Code within fourteen days of its submission.

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