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2023 (4) TMI 172 - AT - Insolvency and BankruptcyReduction of claim amount - appellant contends that Resolution Professional has no jurisdiction to change/reduce the claim amount after he has once admitted the claim - HELD THAT - The Resolution Professional has calculated the claim of the Appellant as per the award dated 19.01.2018. Appellant who has himself initiated the Arbitration Proceeding cannot deny that he is bound by the award which was delivered in his favour. Claim calculated on the basis of the award can neither be said to be incorrect nor against the materials on record. The Adjudicating Authority has rightly taken the view that no error has been committed by the Resolution Professional in reducing the amount of the claim of the Appellant. Appeal dismissed.
Issues involved: Reduction of claim amount by Resolution Professional u/s 7 application
The judgment deals with an appeal filed against the rejection of an application by the Appellant, where the Resolution Professional reduced the claim amount after its provisional admission. The Appellant contended that the Resolution Professional exceeded jurisdiction by reducing the claim amount after initial admission, citing that a previous award was irrelevant to the current claim process. The Adjudicating Authority upheld the reduction of the claim amount by the Resolution Professional, emphasizing that the claim amount mentioned in the Section 7 application is not final for determining voting rights. The Authority highlighted the Resolution Professional's right to revise claim amounts based on additional information, as per CIRP Regulations 2016. The Authority also noted that the Appellant, who initiated an arbitration proceeding resulting in a favorable award, cannot deny being bound by that award. The claim amount was correctly calculated based on the award, and the Adjudicating Authority found no error in the Resolution Professional's actions. Consequently, the appeal was dismissed. In summary, the issues involved in the judgment are the Resolution Professional's authority to reduce claim amounts, the relevance of a previous arbitration award to the current claim process, and the Adjudicating Authority's decision regarding the Resolution Professional's actions in reducing the claim amount.
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