Summary
The Court declined to require NTPC’s disputed claim to be moved from “other creditor claims” to “operational creditors” in the information memorandum while arbitration remained pending. Recording it under claims awaiting adjudication neither decided nor extinguished it. The resolution applicant and creditors’ committee were to account for the recorded claim, with remedies concerning its eventual treatment in the final resolution plan left open.
Issues
- Whether the pending arbitral claim had to be classified as an operational-creditor claim in the information memorandum and whether its existing treatment extinguished it.
Held
- The claim amount was recorded in the memorandum and its figure was not disputed. Since adjudication remained pending before the arbitrator, its description as another creditor claim under adjudication was appropriate on these facts.
- The memorandum supplies relevant financial information; it does not adjudicate the claim. The resolution professional has no power to accept or disallow claims by adjudication, and the recorded claim was not extinguished merely by its classification. Its legal fate remained subject to competent adjudication or operation of law.
- The resolution applicant and creditors’ committee were expected to consider the recorded claim appropriately in the final plan. NTPC’s contentions and lawful remedies concerning the nature or manner of the plan’s eventual provision for its claim remained open.
Result
Civil appeal disposed of with clarifications preserving the claim and remedies concerning its eventual treatment. Earlier interim order vacated; resolution process expected to be expedited. Pending applications disposed of.