Resolution Professional directed to include full claim amount in records, ensuring transparency and accuracy in insolvency proceedings

The Tribunal held that the Resolution Professional erred in admitting the claim for a nominal amount of Rs. 1 instead of the full decretal amount of Rs. 21,79,88,328.04 as per the decree. The Resolution Professional was directed to include the entire claim amount in the records, subject to the pending appeal's final outcome before the High Court. This decision aimed at ensuring transparency for potential resolution applicants. Consequently, the Tribunal allowed the application and directed the inclusion of the Applicant's claim for the total decretal sum, emphasizing the importance of accurately assessing and admitting claim amounts in insolvency proceedings based on prior judgments' legal status and finality.

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Issues:
1. Admission of claim by Resolution Professional under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.
2. Dispute regarding the quantification of the claim amount and the impact of pending legal proceedings on the claim.
3. Correctness of admitting the claim at a notional value of Rs. 1 by the Resolution Professional.

Issue 1: Admission of Claim by Resolution Professional
The case involved an application by Interocean Navigation Ltd. seeking directions against the Resolution Professional of Alcock Ashdown (Gujarat) Ltd. The Applicant requested the Adjudicating Authority to admit its claim as an operational creditor. The Resolution Professional initially rejected the claim but later considered it for a nominal amount of Rs. 1 based on the judgment in Essar Steel India Ltd., CoC vs. Satish Gupta & Ors.

Issue 2: Dispute Regarding Claim Quantification
The Applicant had filed a civil suit in 1999 claiming compensation from the Corporate Debtor, which was granted in its favor in 2015. The Corporate Debtor appealed to the High Court, and the matter was pending. The Resolution Professional argued that due to the pending appeal, the claim amount was not finalized. However, the Tribunal noted that the claim had reached finality as per the decree of the competent court, despite the appeal being pending.

Issue 3: Correctness of Claim Admission
The Tribunal held that the Resolution Professional erred in registering the claim for a nominal amount of Rs. 1 instead of admitting the entire decretal amount of Rs. 21,79,88,328.04 as per the decree. The Resolution Professional was directed to include the full claim amount in the records, subject to the finality of the outcome of the appeal before the High Court. This decision aimed to ensure transparency for prospective resolution applicants considering the Corporate Debtor's resolution plan.

In conclusion, the Tribunal allowed the application and directed the Resolution Professional to include the Applicant's claim for the total sum of Rs. 21,79,88,328.04 as per the decree passed by the Senior Civil Judge. The decision emphasized the importance of correctly assessing and admitting claim amounts in insolvency proceedings, considering the legal status and finality of prior judgments.

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