Claim updation under Regulation 12A permits withdrawal of satisfied claims but final withdrawal requires adjudicatory determination.

The Tribunal addressed whether a creditor with an admitted claim in CIRP may update or withdraw that claim under Regulation 12A when it is partly or fully satisfied, and whether the IRP/RP may refuse such withdrawal or must seek the Adjudicating Authority. It held that Regulation 12A requires creditors to update claims on partial or full satisfaction and that the IRP/RP has administrative duties to receive, verify and maintain updated claims but lacks adjudicatory power to finally determine withdrawal. Consequently, final determination of withdrawal requires the Adjudicating Authority; the IRP was justified in seeking directions and the matter is remanded for fresh decision.

---

---

Issues: (i) Whether a creditor who has an admitted claim in a CIRP can update that claim by withdrawing it (including where it is satisfied partly or fully) under Regulation 12A of the CIRP Regulations, 2016; and (ii) Whether the Interim Resolution Professional (IRP)/Resolution Professional (RP) had authority to refuse withdrawal and whether the IRP could move the Adjudicating Authority seeking directions on withdrawal.

Analysis: The Code and CIRP Regulations require the IRP/RP to receive, collate, verify and maintain an updated list of claims and to constitute the Committee of Creditors (CoC) on that basis. Regulation 12A expressly mandates that a creditor shall update its claim as and when the claim is satisfied partly or fully after the insolvency commencement date. The IRP/RP has administrative duties but not adjudicatory power to conclusively decide a change in the status of a claim; where adjudication is required, the IRP/RP may approach the Adjudicating Authority. The Tribunal examined prior precedents and the effect of the post amendment Regulation 12A and concluded that updation under Regulation 12A includes the situation where a claim is fully satisfied and effectively withdrawn, but any final determination on withdrawal requires decision by the Adjudicating Authority since the IRP/RP lacks adjudicatory power.

Conclusion: The appeal is allowed; the impugned order dismissing the IRP's application is set aside. The matter is remanded to the Adjudicating Authority to decide IA No. 3965 of 2023 afresh after affording parties an opportunity of hearing. The IRP was justified in approaching the Adjudicating Authority for directions.

---