# In the matter of Intec Capital Ltd. vs. Uday Kumar Bhaskar Bhat, IRP of Atharva Auto Logistics Pvt. Ltd. Company Appeal (AT) (Insolvency) No.361 of 2023

> NCLAT judgment dated 2023-04-05. Citation: TCN-2023-NCLAT-00640. The appeal was filed against an order dated 17.01.2023, which rejected the appellant's…

- **Court:** NCLAT
- **Order date:** 5 Apr 2023
- **Citation:** TCN-2023-NCLAT-00640
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/intec-capital-ltd-vs-uday-kumar-bhaskar-bhat-irp-of-atharva-auto-logistics-pvt-l-9d70ae5d

## Summary

### Background

The appeal was filed against an order dated 17.01.2023, which rejected the appellant's application. The appellant had filed a Section 7 application, which was admitted on 18.02.2022. Following the IRP's publication, the appellant filed a claim of Rs. 6,52,42,330/-, which was provisionally admitted by the IRP on 18.03.2022. After verification, the RP reduced the claim to Rs. 3,16,90,306/-. The appellant then filed an application before the Adjudicating Authority, which was rejected.

## Facts

Intec Capital Ltd. filed a claim of Rs. 6,52,42,330/- in the corporate insolvency resolution process of Atharva Auto Logistics Pvt. Ltd. The claim was initially provisionally admitted by the Interim Resolution Professional (IRP) on 18.03.2022. Subsequently, the Resolution Professional (RP) reduced the claim amount to Rs. 3,16,90,306/- after verification. The reduction was based on an arbitration award dated 19.01.2018, where the Corporate Debtor was held liable to pay Rs. 1,35,35,770/- along with interest. The Appellant had initiated the arbitration proceedings. The Adjudicating Authority rejected the application filed by the Appellant against the reduction of claim. The key fact is the existence and relevance of the arbitration award in determining the admissible

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## Issues and analysis

### Issue 1: Whether the Resolution Professional has the jurisdiction to reduce the claim amount after it has …

**Ratio:** Regulation 14(2) of CIRP Regulations 2016 allows the Resolution Professional to revise

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**Reasoning:** The court reasoned that the Resolution Professional has the power to change the claim

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**Interpretation:** This regulation provides the Resolution Professional with the flexibility to

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**Application:** The court applied this regulation to the facts of the case, finding that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Intec Capit…
- **Respondents:** Atharva Auto…; Uday Kumar…

## Timeline

- **2023-01-17 — Order Da…**: Application filed by…
- **2022-02-18 — Section 7 Application…**: Section 7 application filed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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