Mumbai : The National Company Law Appellate Tribunal said that interim resolution professionals are authorized to change the claim amount deposited by creditors, if additional information is available with them.
The NCLAT’s observations were related to the insolvency process of Atharva Auto Logistics, which was initiated by the National Company Law Tribunal in February 2022.
Uday Kumar Bhaskar Bhat, who was appointed as interim resolution professional to run the day-to-day affairs of Atharva, reduced the claim amount 6 crore by financial creditor Intech Capital. 3 crores after verification. Subsequently, Intech filed a petition challenging Bhat’s decision, but it was dismissed by the NCLT in January 2023.
On Monday, the NCLAT upheld the NCLT order after Intake moved the appellate tribunal for relief.
A bench of Justices Ashok Bhushan and Barun Mitra observed, “The Adjudicating Authority has rightly considered that there was no error committed by the Resolution Professional (RP) in reducing the claim amount of an appellant. We do not find any error in the impugned order.” meets.”
According to Bhat, in 2018, the financial creditor had won an arbitral award 1.35 crores. However, when RP calculated the intake claims, they found that 1.35 crore was given as loan to Atharva by Intech along with other entities. The dispute regarding the said loan went to arbitration. and Atharva Auto was ordered to pay 1.35 crore with interest at 19% per annum as part of the arbitration.
The NCLT held that the claim of the applicant was correctly enumerated for the purpose of determining the voting rights of the applicant, and that no illegality or infirmity appears to have been committed by the IRP.
The Tribunal also noted that as per Regulation 14(2) of the CIRP Regulations 2016, the RP has the power to revise the claim amount, when it receives additional information requiring revision.
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