Surprise claim cannot be brought against the debtor after approval of resolution plan under IBC: Delhi High Court

Genesis of the dispute

In 2015, OCL entered into a coal mine development and production agreement with the Union of India for the Ardhagram coal mine. The terms of the agreement stipulated that OCL would retain a Performance Bank Guarantee (PBG) of ₹92.2 crore. The agreement was terminated by the Union of India at the end of 2021 as OCL did not renew the PBG.

Meanwhile, the company has been admitted to the corporate insolvency resolution process (CIRP) and the company’s resolution professional (RP) has urged creditors to file cases to test the company’s liabilities.

The Union of India filed two separate claims, one for PBG claim amounting to ₹92.25 crore and the other for additional fixed costs claim amounting to ₹9.21 crore. Although the latter was included in the resolution plan, the RP did not recognize PBG’s claim as a “financial debt” and the Union government was not recognized as a “financial creditor”. However, RP directed the Union to file a new claim. The government did not do this. Meanwhile, additional fixed costs were calculated in accordance with the resolution plan and paid accordingly.

Once the resolution plan was accepted, OCL came under the management of HI A MMT Pvt. Ltd. The new management of the company has expressed its intention to take part in the tender for the Lalgarh South coal mine in February 2024. The Union government has barred them from participating in the coal auction until payment of ₹92.25 crore (from PBG). Accordingly, OCL filed a case in the Delhi High Court.