# In the matter of Kerala Chamber of Commerce: Corporate and Industries

> NCLT judgment dated 2024-03-19. Citation: TCN-2024-NCLT-02029. The case involves an application filed by the Resolution Professional (RP) of Kerala Chamber of…

- **Court:** NCLT
- **Order date:** 19 Mar 2024
- **Citation:** TCN-2024-NCLT-02029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kerala-chamber-of-commerce-corporate-and-industries-fa01374a

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Kerala Chamber of Commerce and Industries (Corporate Debtor) under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (IBC) and Rule 11 of NCLT Rules, 2016. The RP sought reclassification of claims, specifically those pertaining to arbitration awards and operational creditors, from 'other creditors' to 'Financial Creditors' and 'operational creditors' respectively. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application filed by Phoenix ARC Private Limited under Section 7 of the IBC. The CIRP was admitted on 21.02.2022. The initial Resolution Professional was replaced by Mr. Jossy Steephen Kattur.

## Facts

Phoenix ARC Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Kerala Chamber of Commerce and Industries (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP was admitted on 21.02.2022. Mr. K. Parameswaram Nair was initially appointed as the Interim Resolution Professional, later replaced by Mr. Jossy Steephen Kattur. The Resolution Professional filed an application seeking reclassification of claims. The application sought to reclassify claims pertaining to arbitration awards from 'other creditors' to 'Financial Creditors' and claims pertaining to operational creditors from 'other creditors' to 'operational creditors'. Concerns were raised during the 14th CoC meeting regarding the classification of

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## Issues and analysis

### Issue 1: Whether the claims arising from arbitration awards in favor of home buyers (allottees) can be …

**Ratio:** Amounts raised from homebuyers through real estate agreements, primarily for profit, fall

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**Reasoning:** The Tribunal relied on judicial precedents, including the Supreme Court's affirmation

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**Interpretation:** Section 5(8)(f) of the IBC defines 'financial debt' to include any amount

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**Application:** The Tribunal applied the ratio to the facts of the case, noting that the claims

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** Mr Jossy Steephen…
- **Respondents:** Kerala Chamber of…; Phoenix Arc…

## Timeline

- **2021-01-01 — CP(IBC)/33/К…**: Underlying CP(IB) filed by…
- **2022-02-21 — Admission o…**: Tribunal admitted the CIRP…

## 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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