The National Company Law Appellate Tribunal (NCLAT) has upheld the right of the Resolution Professional (RP) to request additional evidence for claim verification, reinforcing the protocols surrounding claims in insolvency proceedings.
NCLAT Upholds RP’s Right to Seek Proof for Claim Verification
The National Company Law Appellate Tribunal (NCLAT) has affirmed the authority of a Resolution Professional (RP) to seek additional evidence from claimants for the verification of claims in insolvency proceedings. This ruling supports the protocol that allows RPs to ensure that the claims presented are thoroughly substantiated.
In this instance, the NCLAT considered the implications of requiring RPs to possess sufficient grounds for adjudicating claims while ensuring that those claims are validly established. However, the tribunal clarified that while RPs can verify claims, they do not hold the jurisdiction to adjudicate on issues of contractual validity.
The decision will significantly impact the practices surrounding claim verification in insolvency scenarios, as it empowers RPs to diligently evaluate claims, ensuring financial records are validated. Legal practitioners representing creditors or debtors in insolvency should note this critical delineation of RP authority in the process.
Citations
- NCLAT Delhi (2026)
