Insolvency claim admission based on arbitral award upheld where remainder amount clause affected payment mode, not quantified liability.

The arbitral award fixed the corporate debtor's liability and only the mode and source of payment were linked to the remaining amount under the agreement; that reference did not limit the quantified debt recognised in the award. A claim under the Insolvency and Bankruptcy Code includes a right to payment whether reduced to judgment, fixed, disputed or undisputed, so the resolution professional was correct to admit the claim at the quantified figure. The challenge to restricting the admitted insolvency claim to the alleged remainder amount therefore failed, and the voting share based on the admitted claim was not disturbed.

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Issues: Whether the applicant could seek restriction of the first respondent's admitted insolvency claim to the so-called remainder amount under the arbitral award, and consequentially challenge the voting share arising from the admitted claim.

Analysis: The arbitral award fixed the amount payable by the corporate debtor and separately indicated the manner of payment. The reference to remainder amounts in the underlying agreement governed the mode and source of payment and did not curtail the quantified liability recognised in the award. Under the Insolvency and Bankruptcy Code, a claim includes a right to payment whether reduced to judgment, fixed, disputed or undisputed. The admitted claim was therefore not dependent upon the availability of any remainder amount, and the resolution professional's admission of the claim at the quantified figure could not be treated as erroneous on that ground.

Conclusion: The challenge to the admission of the claim on the basis that only the remainder amount was recoverable failed, and the admitted claim was upheld against the applicant.

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