Claims in CIRP: Late Claims, Contingent Claims, Rejection

A creditor's rights in a CIRP depend on its claim being filed in time and admitted at the right value. Questions test the deadlines in Regulation 12, what happens to a claim filed after ninety days or after the plan, how contingent and foreign currency claims are valued, and where a creditor goes when the resolution professional rejects its claim. Each answer below follows the four steps.

1. The Law in Brief

• Filing. Creditors submit claims with proof by the last date in the public announcement, fourteen days from the appointment of the interim resolution professional (Regulation 12(1)), or up to the ninetieth day from the commencement date if they miss it (Regulation 12(2))
• Verification. The professional verifies claims within seven days and maintains the list of claims; his role is administrative, and disputes go to the NCLT under section 60(5) (Swiss Ribbons, 2019)
• Valuation. Claims are computed as on the insolvency commencement date; contingent claims are estimated (Regulation 14) and foreign currency claims converted at that date's rate (Regulation 15)
• After the plan. Claims not provided for in an approved plan are extinguished (Ghanashyam Mishra, 2021)

Figure 1: The claims timeline

2. Can a Claim Be Filed after the Last Date in the Announcement?

• Issue. Whether a claim filed after the last date in the announcement, but within ninety days of commencement, must be considered.
• Law. Regulation 12(2) of the CIRP Regulations allows a creditor who fails to submit its claim by the last date to submit it, with proof, up to the ninetieth day from the insolvency commencement date. Verified claims decide the composition of the committee, which is reconstituted as later claims are admitted.
• Application. CD Bank's claim was filed on day 75, within the ninety-day window. No explanation for the delay is required within that period.
• Conclusion. The resolution professional must verify the claim and, if admitted, reconstitute the committee with CD Bank as a member with voting share for ₹40 crore. Decisions already taken stand, but CD Bank votes on matters from then on.

3. Are Claims after 90 Days or after the Plan Admitted?

• Issue. Whether claims filed after the ninetieth day may be admitted, before and after the committee approves a plan.
• Law. Regulation 12(2) sets ninety days as the outer limit. Tribunals have sometimes admitted claims filed later but before the committee approved a plan, where the delay was explained and admission would not derail the process. In RPS Infrastructure v Mukul Kumar (2023), the Supreme Court refused a claim filed long after ninety days and after the committee had approved a plan, holding that the public announcement gives deemed knowledge and that the process cannot be reopened indefinitely. Claims not in an approved plan are extinguished (Ghanashyam Mishra, 2021)
• Application. GH Ltd filed before any plan was voted on and gives an explanation, though the announcement gave it deemed knowledge. JK Ltd filed after the committee had approved a plan built on the existing list of claims.
• Conclusion. GH Ltd's claim may be considered at the NCLT's discretion if the delay is satisfactorily explained and the process will not be disrupted, but it has no right to admission. JK Ltd's claim should be refused, and once the plan is approved by the NCLT, its claim is extinguished.

Figure 2: Special claims and how they are handled

4. How Is an Uninvoked Bank Guarantee Claimed?

• Issue. How a contingent claim, such as an uninvoked bank guarantee, is treated in the CIRP.
• Law. A claim under section 3(6) includes a right to payment whether or not reduced to judgment, fixed, matured, disputed or undisputed. Regulation 14 requires the resolution professional to make the best estimate of a claim whose amount is not precise because it is contingent or for any other reason, and to revise it as more information becomes available.
• Application. LM Bank's right to reimbursement from NO Ltd arises if the department invokes the guarantee. The show cause notice suggests a real possibility of invocation, but it has not yet happened.
• Conclusion. The professional should not reject the claim outright but should admit it at a best estimate, which may be nominal or partial on present information, and revise it if the guarantee is invoked during the CIRP. LM Bank's voting share follows the admitted amount. If LM Bank disagrees with the estimate, it may apply to the NCLT under section 60(5)

5. How Are Foreign Currency Claims and Interest Valued?

• Issue. How a foreign currency claim and interest are computed, and the forum for disputing the admitted amount.
• Law. Regulation 15 requires a claim in foreign currency to be valued in Indian currency at the official exchange rate as on the insolvency commencement date. Claims are computed as on that date, so interest accruing afterwards is not added to the claim. Disputes about admission go to the NCLT under section 60(5), and section 63 bars civil courts.
• Application. RS Capital's claim must be converted at ₹85, the rate on 1 March 2026, with interest only up to that date. The resolution professional's lower figure is correct in principle if computed this way.
• Conclusion. The claim is admitted as the principal and interest outstanding on 1 March 2026, converted at ₹85 to the dollar. The civil suit is not maintainable; if RS Capital disputes the computation, it must apply to the NCLT.

6. Frequently Asked Questions

Must government authorities file claims like other creditors?

Yes. Tax and other authorities must file claims; dues not claimed and not provided for in the plan are extinguished on its approval (Ghanashyam Mishra, 2021).

Who decides claims in liquidation?

The liquidator, under section 40, in a quasi-judicial capacity, with an appeal to the NCLT within fourteen days under section 42.

7. Related Topics

• Topic 33: Claims in CIRP. Submission, verification and collation.
• Topic 42: Section 31. Approval and the clean slate.
• Topic 113: Section 12A IBC Withdrawal. Section 12A after 2026.