Claim Filed During Liquidation Must Be Dealt With U/S 53 Of IBC, NCLT Can't Direct RP To Make Payment Directly: NCLAT Delhi

The NCLAT (National Company Law Appellate Tribunal), Delhi, has ruled that a "claim has to be dealt with in accordance with the waterfall mechanism under Section 53 of IBC (Insolvency and Bankruptcy Code)" and that "NCLT cannot direct RP (Resolution Professional) to make payment." Section 53 dictates the priority of payments to creditors during liquidation. The tribunal emphasized that the NCLT's role is to ensure adherence to this mechanism, not to bypass it by issuing direct payment orders to the Resolution Professional. This upholds the fundamental principle of equitable distribution and statutory hierarchy in insolvency proceedings.