CIRP custody and financial debt recognition require documentary verification of guaranteed borrowings and related asset possession.

Possession of Tower-B was held to remain with the corporate debtor during CIRP, so the creditor in SARFAESI possession was directed to hand it over to the resolution professional. The claim based on the loan transaction, escrow routing, adjustment against earlier liabilities, guarantee deed, and mortgage documentation was treated as financial debt because the documentary trail established a guaranteed borrowing under the insolvency framework. The resolution professional was required to examine claimant-produced material and not rely only on the corporate debtor's internal records where the debt was otherwise supported on record. The creditor was to be admitted as a committee of creditors member in accordance with its voting share.

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Issues: (i) Whether the corporate debtor, through the resolution professional, was entitled to recover possession of Tower-B from the creditor holding it under SARFAESI proceedings. (ii) Whether the creditor's claim arising from the loan transaction and guarantee arrangement was liable to be admitted as a financial debt in the corporate insolvency resolution process.

Issue (i): Whether the corporate debtor, through the resolution professional, was entitled to recover possession of Tower-B from the creditor holding it under SARFAESI proceedings.

Analysis: The asset admittedly belonged to the corporate debtor and the creditor did not seriously dispute handing over possession. The insolvency process was held to prevail for purposes of control and custody of the corporate debtor's asset during CIRP, and no substantive objection survived on this point.

Conclusion: The creditor was directed to hand over possession of Tower-B to the corporate debtor through the resolution professional.

Issue (ii): Whether the creditor's claim arising from the loan transaction and guarantee arrangement was liable to be admitted as a financial debt in the corporate insolvency resolution process.

Analysis: The record showed disbursal of funds, routing of the amount through the escrow account, adjustment against earlier loan accounts of the corporate debtor, and execution of a separate guarantee deed and mortgage-related documentation. The resolution professional was required to verify the claimant's material and could not confine himself only to the corporate debtor's internal records where the transaction trail and supporting documents established the debt. A guaranteed borrowing falls within the ambit of financial debt under the Code.

Conclusion: The claim was directed to be admitted as financial debt and the creditor was to be treated as a committee of creditors member according to its voting share.

Final Conclusion: The applications were disposed of by ordering surrender of possession of the asset and admission of the creditor's claim in the insolvency proceedings.

Ratio Decidendi: A claim supported by a guarantee deed, fund disbursal records, and documentary evidence of adjustment against the corporate debtor's liabilities constitutes financial debt, and the resolution professional must consider claimant-produced material for admission where the debt is otherwise established on record.

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