Classification of Creditor Claims in Insolvency Case

In a recent legal case, the court delved into the intricate details of categorizing creditor claims in an insolvency proceeding. The focus was on ensuring fairness and accuracy in determining the nature of claims, particularly in distinguishing between operational creditors and other creditors. The court’s legal analysis provided clarity on the treatment of such claims, emphasizing the importance of proper categorization for a just resolution process.


  • Appellant claimed that the amount should have been categorized under ‘Claims of Operational Creditors’.
  • The Adjudicating Authority and the Appellate Tribunal agreed that the claim was appropriately listed as ‘List of Other Creditor Claims’ in the Information Memorandum.
  • The claim is still pending adjudication before the Arbitrator.
  • Appellant’s claim is correctly described as ‘other creditor claims (claims under adjudication)’ in the memorandum.
  • Appellant’s claim will not be extinguished until it is adjudicated upon by a competent forum or by operation of law.
  • The issue in this appeal is the categorization of the appellant’s claim under ‘Claims of Operational Creditors’.
  • The Resolution Professional does not have the authority to accept or disallow claims.
  • The claim of the appellant has been noted in the information memorandum.
  • The claim does not get extinguished but will be subject to adjudication by the Arbitrator.
  • The resolution applicant will consider the appellant’s claim while submitting the proposal.
  • The committee of creditors will also take due notice of the claim and address it in the final resolution plan.

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  • The appellant can raise grievances about the nature or manner of provision made in the final resolution plan regarding its claim.
  • The appellant can seek appropriate legal remedies if aggrieved with the final resolution plan.
  • All contentions available to the appellant in this regard are left open, clarifying that the appellant’s claim has not been treated as extinguished.
  • The civil appeal has been disposed of, with the interim order passed earlier being vacated as a result.
  • The concerned authorities are expected to expedite the resolution process post the disposal of the appeal.
  • Any pending applications have been disposed of.

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Case Number: C.A. No.-002798 / 2020

Click here to read/download original judgement

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