The conundrum of ‘claims’ in the corporate insolvency resolution process
A robust process of submission and consideration of ‘claims’ is the epicentre of the corporate insolvency resolution process (CIRP). It helps determine the liabilities and value of a corporate debtor (CD), provides a participatory opportunity to the creditors, and avoids extinguishing claims without due consideration. In the present article, an attempt has been made to understand the different modalities of the concept of ‘claim’, emphasising that a divergent approach is required for their consideration. The Code incorporates a broad definition of ‘claims’, including determinable and indeterminable rights, which are not limited to mere monetary obligations of the CD.
Therefore, the consideration of the claims should be commensurate with the comprehensiveness of the concept of ‘claim’ under the Code. We have also analysed the domestic and international legal systems to highlight the best practices for assessing ‘claims’ submitted during the CIRP.