# In the matter of Avil Menezes, RP of AMW Auto Component Ltd. Vs. Shah Coal Pvt. Ltd. CA (AT) (Ins) No. 63 of 2021

> NCLAT judgment dated 2021-02-03. Citation: TCN-2021-NCLAT-00380. This is an appeal filed by the Resolution Professional of ‘AMW Auto Components Ltd.' against…

- **Court:** NCLAT
- **Order date:** 3 Feb 2021
- **Citation:** TCN-2021-NCLAT-00380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/avil-menezes-rp-of-amw-auto-component-ltd-vs-shah-coal-pvt-ltd-ca-6ec7da0b

## Summary

### Background

This is an appeal filed by the Resolution Professional of ‘AMW Auto Components Ltd.' against the order dated 18th December, 2020 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad, Court-2. The order allowed the application of Respondent- ‘Shah Coal Pvt. Ltd.' under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 to include its claim in the category of ‘Financial Creditor'. The appeal assails the decision on the ground that the claim related to the supply of goods and fell within the purview of the 'operational debt', and thus, could not be classified under the category of 'financial debt'.

## Facts

The Resolution Professional of ‘AMW Auto Components Ltd.' filed an appeal against the order dated 18th December, 2020 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad, Court-2. The Adjudicating Authority allowed the application of ‘Shah Coal Pvt. Ltd.' to include its claim in the category of ‘Financial Creditor'. The Resolution Professional argued that the claim related to the supply of goods and should be classified as 'operational debt' instead of 'financial debt'. The Resolution Professional is part of the Corporate Insolvency Resolution Process mechanism and is supposed to collate the claims. The Resolution Professional sought to withdraw the appeal.

## Issues and analysis

### Issue 1: Whether the Resolution Professional can be considered an aggrieved party with the locus to maintain …

**Ratio:** The Resolution Professional is not vested with any adjudicatory powers and is part of the

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**Reasoning:** The court reasoned that the Resolution Professional's role is limited to collating claims

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**Interpretation:** The interpretation of the I&B Code suggests that the Resolution

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**Application:** The court applied the ratio to the facts by stating that the Resolution

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## Parties

- **Judges:** Bansi Lal…; Ashok Kumar…; +1 more
- **Appellants:** Avil Me…
- **Respondents:** AMW Auto Component…; M/s. Shah Coal…

## Timeline

- **2020-12-18 — Impugned…**: The Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad,…
- **2021-02-03 — Appeal Dis…**: The court dismissed the appeal as withdrawn after the Appellant's counsel submitted that…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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