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.
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About the Authors
Akash Chandra Jauhari is a Co-Lead (Corporate Law and Financial Regulations) working in the area of Corporate Law and Financial Regulation. He is currently involved in projects relating to insolvency and bankruptcy laws, and regulation of valuation professionals. Akash holds a B.A. (Pol. Science) LL.B. (Hons.) from National Law University, Odisha, Cuttack. He has practised law, which included appearing before judicial and quasi-judicial forums, for over three years in New Delhi with Wadhwa Law Chambers (2016-2019) and in Lucknow, Uttar Pradesh with Mr. A.K. Jauhari (2019). While practicing law, Akash was involved in matters in the fields of public and private law inter alia Constitutional Law, Consumer Law, Contract Law, Arbitration Law, Insolvency Law, Securitisation Law, Companies Law. Despite being involved full-time in his law practice, he also contributed as a Specialist Editor to the 1st Edition of Wadhwa Law Chambers Guide to the Insolvency and Bankruptcy Code (2019),1st Edition of Wadhwa Law Chambers Shorter Insolvency and Bankruptcy Code with Procedures (2020), and assisted Mr Anirudh Wadhwa and Mr Anirudh Krishnan in the 6th Edition of Justice R.S. Bachawat’s Law of Arbitration and Conciliation (2017).
Anshul Agrawal is a Manager at Insolvency and Bankruptcy Board of India (IBBI) and is currently posted in the legal affairs division.
Raghavi R is a final year student pursuing B.Com. LL.B. (Hons) at Tamil Nadu National Law University.
