The Supreme Court of India Dismisses the civil appeal filed by the state revenue department as the delay of 142 days is more excessive than the delay condonable under Section 62 of the Insolvency and Bankruptcy Code 2016. The appeal arose from the impugned final judgment and order passed by the National Company Law Appellate Tribunal ( NCLAT ).
Before the National Company Law Appellate Tribunal ( NCLAT ), the Appellant assessee Zicom Saas Pvt Ltd & Anr has submitted that they have filed a claim before the Resolution Professional in ‘Corporate Insolvency Resolution Process’ ( CIRP ) for an amount of Rs. 43,72,97,479/- out of which claim Resolution Professional accepted the claim of Rs. 36,68,12,729/- and in the Resolution Plan, they have been allotted only 1% of the admitted claim.
The Appellant submitted that the Appellant’s claim was required to be treated as a secured charge given the Judgement in the matter of “State Tax Officer Vs. Rainbow Papers Limited”. It was submitted that the Adjudicating Authority committed an error in not accepting the entire claim of the Appellant which was admitted.
The Tribunal while dismissing the appeal, held that the Appellant having been treated as an Operational Creditor allocation of amount in the Resolution Plan cannot be said to violate Section 30 (2)(b).
A three-judge bench comprising of Chief Justice of India, Dr Dhananjaya Y Chandrachud, Justice J B Pardiwala and Justice Manoj Misra viewed that the period of delay is 142 days which is more than the delay which can be condoned in terms of Section 62 of the Insolvency and Bankruptcy Code 2016.
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