IBC: Rejection Of Claims Need Evaluation

In case any corporate debtor defaults in making payment to its creditor(s), a corporate insolvency resolution process ("CIRP") may be initiated against such corporate debtor. Once CIRP is initiated, claim(s) may be invited by interim resolution professional ("IRP") from creditor(s) for ascertaining the actual liability pertaining to such corporate debtor so that such creditor(s) may recover their dues upon revival or liquidation of such corporate debtor to the extent allowed. Upon receipt of such claim(s), IRP / resolution professional ("RP") is required to verify the same from books of account of the corporate debtor or other available documents. Section 3(6) of the Insolvency and Bankruptcy Code, 2016 ("IBC") contains a wide definition of 'claim'. There were several instances wherein IRP had rejected the claim(s) of creditor(s) due to various reasons, which were later allowed by NCLT / higher courts.