# In the matter of Mercator Petroleum Limited

> NCLT judgment dated 2023-11-02. Citation: TCN-2023-NCLT-00872. The case involves an application filed by UTI Structured Debt Opportunities Fund-I against the…

- **Court:** NCLT
- **Order date:** 2 Nov 2023
- **Citation:** TCN-2023-NCLT-00872
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mercator-petroleum-limited-76f80958

## Summary

### Background

The case involves an application filed by UTI Structured Debt Opportunities Fund-I against the Resolution Professional (RP) of Mercator Petroleum Limited, challenging the RP's re-verification and reduction of the applicant's financial debt claims from INR 2,57,84,25,381 to approximately INR 231 crores. The applicant, a financial services provider and Category II Alternate Investment Fund, had subscribed to debentures issued by Mercator Limited (ML), with Axis Trustee Services Limited as the Debenture Trustee. A corporate guarantee was executed by Mercator Petroleum Limited in favor of the applicant. ML defaulted on its obligations, leading the Debenture Trustee to call an event of default. The applicant lodged its claims, which were initially refused by the erstwhile

…

## Facts

UTI Structured Debt Opportunities Fund-I (Applicant) is a financial service provider and a Category II Alternate Investment Fund. Mercator Petroleum Limited (Corporate Debtor) is a subsidiary of Mercator Limited (ML), which is presently in CIRP and engaged in shipping and mercantile operations. The Applicant subscribed to debentures issued by ML. Axis Trustee Services Limited was appointed as the Debenture Trustee. A Deed of Corporate Guarantee was executed between the Corporate Debtor and the Debenture Trustee on March 26, 2018. ML defaulted on its obligations on October 1, 2019, leading the Debenture Trustee to call an event of default. The Corporate Debtor was admitted into CIRP on August 31, 2020. The Applicant lodged a claim of INR 2,57,84,25,381, which was

…

## Issues and analysis

### Issue 1: Whether the RP was justified in re-verifying and …

**Ratio:** Regulations 12A and 14 of the CIRP Regulations allow the RP to update claims upon coming

…

**Reasoning:** The RP argued that the applicant had failed to disclose the recovery of funds from the

…

**Interpretation:** The CIRP Regulations grant the RP the authority to re-verify and update claims

…

**Application:** The Tribunal did not explicitly rule on whether the RP was justified, but the

…

## Parties

- **Judges:** ANURADHA SANJAY…; Shri. Kuldip…
- **Appellants:** UTI Structured…
- **Respondents:** Mercator Petroleum…; Satish Kuma…

## Timeline

- **2018-03-26 — Deed of Corporate…**: A Deed of Corporate Guarantee was executed between the Corporate Debtor and the Debenture…
- **2019-10-01 — Default by Mer…**: Mercator Ltd defaulted in its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(2) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mercator-petroleum-limited-76f80958