In Brief
NTPC Ltd. (Simhadri Project) challenged the placement of its claim in an Information Memorandum as 'Other Creditor Claims' rather than 'Operational Creditor Claims'. The Supreme Court held that an Information Memorandum serves only to inform about the company's financial position—it is not a forum to decide or reject claims. The Resolution Professional lacks authority to accept or disallow claims. A claim remains valid unless adjudicated by a competent forum or extinguished by law. Proper categorization reflects claim status accurately; the appellant's claim, being under arbitration, was correctly listed as pending. The Court disposed of the appeal, clarifying that the claim does not get extinguished and will be considered in the final resolution plan.
The lawyer headnote and full judgment text are available to registered users.