The Resolution Professional, while collating claims under the Insolvency and Bankruptcy Code, lacks adjudicatory power to decide disputed legal issues; therefore, a claim pending before an arbitral tribunal should be admitted at a notional value of Rs. 1/- rather than being kept in abeyance.

Date of Pronouncement: 20.03.2026

Coram:

Shri. Labh Singh, Hon’ble Member (Judicial)

Ms. Rekha Kantilal Shah, Hon’ble Member (Technical)

Counsel appeared through physically or virtually

Mr. A.K. Shirvastava, Adv. ] For Applicant

Mr. Akash Sharma, Adv. ]

Ms. Manju Bhuteria, Sr. Adv. ] For RP

Mr. Rachita Arora, Adv. ]

O R D E R

Per: Ms. Rekha Kantilal Shah, Member (Technical)

1. The Applicant, M/s. Sanghi Steel Udyog Private Limited is a Company incorporated under the provisions of the Companies Act, 1956, having its registered office at 30, Jambulwadi, Room No. 8, 4th Floor, Near Edward Cinema, Kalbadevi Road, Mumbai, Maharashtra–400002.

2. The Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016 was initiated against the Corporate Debtor by Pixel Consultancy Private Limited having its registered office at 5/4, Clive Row 2nd Floor, and Room No.33A Kolkata 700001, vide an order dated 28.11.2024¹Annexure - A, by this Adjudicating Authority. Mr. Vishnu Kumar Tulsyan was appointed as the Interim Resolution Professional (IRP) and subsequently confirmed as the Resolution Professional by the Committee of Creditors (CoC).

3. In the present case, the Applicants most humbly pray before this Hon'ble Adjudicating Authority to:

a. Direct the Respondent/IRP to verify and admit the entire claim of the Applicant filed on 10.12.2024; and

b. Hold and declare that the claim is not barred by limitation; and

c. Set aside the decision of the respondent to keep the applicant's claim in abeyance; and

d. Induct the Applicant into the Committee of Creditors as unsecured Financial Creditor of the Corporate Debtor; and/or

e. Pass such other/further order(s)/ direction(s), which this Hon'ble Adjudicating Authority may deem fit and proper in the facts and circumstances of the present case.

4. Background of the case

4.1 The dispute traces back to financial transactions occurring between 12.07.2018 and 14.01.2019²Pg.No.128 (Application), during which a sum of Rs. 8,12,50,000/- was disbursed to the Corporate Debtor in multiple tranches by way of bank transfers carrying interest at the rate of 9% per annum. These transactions were conducted alongside a Securities Lending Agreement (SLA) dated 01.01.2018, read with an Extension Agreement dated 24.07.2019³Pg.No.389 (Supplementary Affidavit), involving the lending of shares by the Corporate Debtor to the Applicant. A dispute subsequently arose regarding the legal characterisation of these funds, specifically whether they are considered independent financial debt or were adjustments under the share-lending arrangement.

4.2 Legal proceedings commenced on 03.10.2020, when the Corporate Debtor filed a petition being Commercial Arbitration Petition No. 4870 of 2020⁴Letter – G (Affidavit in Opposition- Pg.No.27) under Section 9 of the Arbitration and Conciliation Act, 1996, before the Hon'ble High Court at Bombay. Thereafter, on 16.10.2020, the Applicant filed proceedings under Section 7 of the IBC against the Corporate Debtor being C.P.(IB)16/KB/2021⁵Annexure - C before this Adjudicating Authority. Before the Hon'ble High Court at Bombay on 23.10.2020⁶Letter – H (Affidavit in Opposition), the counsel on behalf of the Applicant represented that the Respondents "will not press their applications in any other court or Tribunal" while arbitration was pending.

4.3 On 25.06.2021, the Applicant made a further statement to the High Court in the contempt petition No. 11526 of 2021⁷Annexure - D that it would not pursue any applications before the NCLT and would apply to have pending matters there adjourned sine die. Accordingly, on 10.11.2021, this Adjudicating Authority adjourned the Applicant’s previous inso