# In the matter of Birla Tyres Limited

> NCLT judgment dated 2023-10-18. Citation: TCN-2023-NCLT-01125. The case involves an application filed by Kesoram Industries Limited against Pratim Bayal, the…

- **Court:** NCLT
- **Order date:** 18 Oct 2023
- **Citation:** TCN-2023-NCLT-01125
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/birla-tyres-limited-e6194909

## Summary

### Background

The case involves an application filed by Kesoram Industries Limited against Pratim Bayal, the Resolution Professional (RP) of Birla Tyres Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP). Kesoram Industries, claiming to be a financial creditor, sought the tribunal's intervention after the RP rejected their claim. The applicant's claim was initially admitted but later rejected by the RP due to a lack of supporting documents and verification. The applicant contends that once a claim is admitted, the RP cannot re-verify it.

## Facts

Birla Tyres Limited is undergoing Corporate Insolvency Resolution Process (CIRP). Initially, Mr. Seikh Abdul Salam was appointed as the Interim Resolution Professional (IRP), who admitted a claim from Kesoram Industries Limited for Rs. 5,16,39,06,248/- as an unsecured financial creditor. Later, Mr. Pratim Bayal replaced Mr. Salam as the Resolution Professional (RP). The RP sought additional information from Kesoram Industries regarding their claim, which was based on an alleged 'Inter-Company Loan'. Kesoram Industries provided a 'Balance Confirmation' from Birla Tyres, but the RP found it insufficient as it lacked supporting documents proving the disbursement of funds. The RP then rejected Kesoram Industries' claim, leading to the current application by Kesoram

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) can revise and reject a claim that was previously admitted …

**Ratio:** Regulation 14 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution

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**Reasoning:** The court reasoned that the RP has a duty to verify claims and ensure their validity. If

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**Interpretation:** The interpretation is that the power to revise claims is inherent in the RP's

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**Application:** In this case, the RP received additional information (or lack thereof) that led

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Kesoram Industries…
- **Respondents:** Birla Tyres…; PratimB…
- **Advocates:** Tridib…; DEBARGHA…; +6 more

## Timeline

- **2021-01-01 — Company Petition (IB)…**: The case is related to Company…
- **2022-05-05 — CIRP Init…**: Corporate Resolution Insolvency Process (CIRP) was initiated in respect of the Corporate…

## 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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