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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

Liquidation of Kaveri Engineering Ltd commenced on 1 March. During the CIRP, the resolution professional had received a claim from Ramesh Traders but had not verified it. A second claim from Orion Steels had already been verified and admitted by the RP during the CIRP. What is the liquidator's position under the Liquidation Process Regulations?

The liquidator verifies the unverified Ramesh Traders claim within seven days of the liquidation commencement date and does not re-verify the Orion Steels claim, because the regulations prohibit re-verifying a claim already verified during the CIRP.

  1. AVerify the Ramesh Traders claim within seven days of the liquidation commencement date and not re-verify the Orion Steels claimCorrect
  2. BRe-verify both claims afresh within seven days of the liquidation commencement date
  3. CVerify neither claim, since all CIRP claims are deemed admitted on liquidation
  4. DVerify the Orion Steels claim but treat the Ramesh Traders claim as rejected

Explanation

The regulations require the liquidator to verify claims received but not verified during the CIRP within seven days of the liquidation commencement date. The proviso bars re-verification of a claim already verified in the CIRP. So Ramesh Traders is verified and Orion Steels is not re-verified. Re-verifying both contradicts the proviso.

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