# In the matter of Uttam Galva Steel Limited IA No. 1744-MB-C-I-2021 in C.P. (IB) No. 920-MB-C-I-2020

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00726. The case involves an application filed by the Department of Sales Tax, seeking directions to…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00726
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/uttam-galva-steel-limited-ia-no-1744-mb-c-i-2021-in-cp-ib-no-920-mb-c-i-2020-a2d52020

## Summary

### Background

The case involves an application filed by the Department of Sales Tax, seeking directions to the Resolution Professional (RP) to admit their claim as an Operational Creditor in the Corporate Insolvency Resolution Process (CIRP) of Uttam Galva Steels Limited. The applicant also sought a stay on the implementation of the Resolution Plan. The RP had initially rejected a significant portion of the applicant's claim, leading to the application before the NCLT.

## Facts

The Department of Sales Tax filed an application seeking directions to the Resolution Professional (RP) to admit their claim as an Operational Creditor in the CIRP of Uttam Galva Steels Limited. The applicant's claim amounted to Rs.974,33,92,360/- for the assessment years 2009-10 to 2016-17. The RP rejected a claim amounting to Rs.943 Crore. The RP admitted a part of the claim amounting to Rs.31 Crore at full value, as it was crystallized and reflected in the Corporate Debtor's records as of the Insolvency Commencement Date (01.10.2020). The balance claim amount of Rs.943 Crore was disputed as of the Insolvency Commencement Date and was admitted at a nominal value of Rs.1. The applicant issued three demand notices for dues aggregating to Rs.181,94,87,059/-. The

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting a portion of the claim filed by the …

**Ratio:** The Resolution Professional is responsible for verifying claims and admitting them based

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**Reasoning:** The NCLT observed that a portion of the claim was admitted by the RP as it was reflected

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**Interpretation:** This issue involves the interpretation of the powers and duties of the

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**Application:** In this case, the RP admitted the part of the claim that was reflected in the

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Department of…
- **Respondents:** Uttam Galva…; Milind Khas…

## Timeline

- **2020-10-06 — Public Annou…**: Resolution Professional…
- **2020-10-20 — Last Date for Receipt…**: Last date for receipt of claims…

## 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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