Supreme Court of India
NTPC LTD. (SIMHADRI PROJECT) versus RAJIV CHAKRABORTY on 16 November 2020
1090
[2020] 13 S.C.R.
NTPC LTD. (SIMHADRI PROJECT)
A
v.
RAJIV CHAKRABORTY
(Civil Appeal No. 2798 of 2020)
B
NOVEMBER 16, 2020
[A. M. KHANWILKAR, B. R. GAVAI ANDHRISHIKESH ROY, JJ.]
Insolvency and Bankruptcy Code, 2016:
CCorporate Insolvency Resolution Process – InformationMemorandum – Prepared by Resolution Professional – Appellant-creditor’s name was put in the ‘List of Other Creditors’ and was notreflected in ‘Claims of Operational Creditors’ – Appellant’s claimthat its name should have been reflected in ‘Claims of OperationalCreditors’ – Held: Since the claim of the appellant is still pendingDadjudication before the Arbitrator, it has rightly been described inthe memorandum as other creditors claim – The purpose ofInformation Memorandum is only to provide relevant informationregarding financial position of the Company – It does not decidethe claim – The Resolution Professional has no authority to acceptEor disallow the claims – Appellant’s claim would not get extinguishedunless it is adjudicated upon by a competent forum or by operationof law – Appellant can take recourse to appropriate remedy, if it isaggrieved with the final resolution plan – Matter disposed of.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2798Fof 2020.
From the Judgment and Order dated 02.06.2020 of the NationalCompany Law Appellate Tribunal, New Delhi in Company Appeal (AT)(INSOLVENCY) No. 493 of 2020.
Tushar Mehta, SG, Adarsh Tripathi and Gaurav, Advs. for theGAppellant.
C.U. Singh, Sr. Adv., Ms. Vanita Bhargava, Ajay Bhargava,Siddharth Srivastava, Mohit Kishore, Ms. Warmika Trehan and ShivankDiddi, Advs. for the Respondent.
H
The following Order of the Court was passed :
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ORDER
We have heard learned counsel for the parties.
The limited issue in this appeal is about the claim of the appellantnot being reflected under the heading ‘Claims of Operational Creditors’in the Information Memorandum prepared by the Resolution Professional.
The Adjudicating Authority and the Appellate Tribunal have takena view that the appellant’s claim is already noted in InformationMemorandum under the title, ‘List of Other Creditor Claims (excludingRelated Party Claims and Employees and Workmen Claims) as on 17[th]July, 2019’. No grievance has been made by the appellant that the figurenoted therein is incorrect.
According to the appellant, the claim amount should have beenreflected under the heading ‘Claims of Operational Creditors’. We donot agree with this submission.
It is not in dispute that the claim of the appellant is still pendingadjudication before the Arbitrator and it has been, therefore, rightlydescribed in the memorandum as other creditor claims (claims underadjudication).
The purpose of memorandum is only to provide relevant informationregarding the financial position of the company in question. It is notabout deciding the claim or disregarding the claim amount, if it exists inlaw. The Resolution Professional has no authority/power to accept ordisallow the claims. The appellant’s claim would not get extinguishedunless it is adjudicated upon by a competent forum or by operation oflaw.
Suffice it to observe that the claim of the appellant has been takennote of in the information memorandum and does not get extinguishedas such; but it will be subject to adjudication by the Arbitrator. Since it ispart of the memorandum, it is obvious that the resolution applicant wouldtake the same into account while submitting his proposal, due noticewhereof will be taken by the committee of creditors as well, and dealtwith appropriately in the final resolution plan.
In the event, the appellant has any grievance about the nature ormanner of provision made in the final resolution plan qua its claim; and if A
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C
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Aaggrieved with the final resolution plan, may take recourse to appropriateremedy as per law.
All contentions available to the appellant in that regard are leftopen while once again making it clear that the claim of the appellant hasnot been treated as extinguished.
B
In view of the above, the civil appeal is disposed of.
As the appeal is disposed of, the interim order passed earlier standsvacated.
As a result of which, we expect the concerned authorities toCexpedite the process of resolution.
Pending applications, if any, stand disposed of.
Kalpana K. Tripathy
Appeal disposed of.
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