In Brief
A statutory land authority (Development Authority) leased land to a company for 90 years, with outstanding lease premium payments of Rs. 43 crore. When the company went into insolvency, the Authority submitted a claim as a financial creditor. However, the Resolution Professional reclassified it as an operational creditor and the approved resolution plan neither acknowledged the claim nor listed it as a secured creditor. The Supreme Court held that NCLT can recall approval orders to secure justice; the form of claim submission is directory if proof is provided; and a resolution plan failing to acknowledge or correctly state a claim amount, classify a secured creditor properly, or provide for necessary statutory approvals violates Section 30(2) of the Insolvency Code. The Court allowed the appeal and remitted the plan back to the Committee of Creditors for resubmission complying with statutory parameters."
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