The Mumbai Bench of the National Company Law Tribunal (NCLT)condoned 92 days delay as the liquidators delayed to submit claims due to medical difficulty of officer in charge.
The Department of State Tax through the Assistant Commissioner of State Tax, Mumbai-VAT-D-829 under Section 42 of the Insolvency and Bankruptcy Code,2016 (‘the Code’) seeking condonation of delay of 92 days in filing the claim with the liquidator of EPC Constructions India Limited (the Corporate Debtor) and to direct the liquidator to register the claim of the Appellant in accordance with the provision of the Code. M/s Essar Project (India) Limited is the Respondent In the matter of IDBI Bank Limited the Applicant/Financial Creditor
The Corporate Debtor was admitted to Corporate Insolvency Resolution Process (CIRP) vide order of the Adjudicating Authority and appointed Mr. Abhijit Guhathakurta as the Interim Resolution Professional (IRP). The IRP was later confirmed as Resolution Professional (RP).
The Liquidator/Respondent made public announcement calling for submission of claims and also informed the Appellant regarding the initiation of liquidation vide e-mail dated 25.05.2021. Subsequently, the Appellant lodged its claim along with Form-B vide letter dated 18.09.2021 for a sum of Rs.103,74,91,150/- and submitted proof of claim.
The Appellant had filed the claim in CIRP proceedings on time, however, during the liquidation proceedings there has been a delay of 92 days for submission of claim and delay of 203 days for filing of the present appeal on account of personal medical difficulty of the officer in charge.
The Appellant had vide e-mail requested the liquidator to provide them with the copy of the financials and annual reports for the period 2017-18 onwards. The liquidator had provided the Appellant with a copy of the annual report for the financial year 2017-18, but stated that due to non-cooperation of the Corporate Debtor, financial statement for the period after 2018-19 had not been finalized.
The Appellant submitted that the financials of the Corporate Debtor for the financial year 2007-08 and 2008-09 show non-payment of taxes on account of disputes. The financials for the subsequent periods were finalized by the liquidator and the tax dues payable to the Appellant might have been recorded in the books of the Corporate Debtor as orders for those dues were passed after 31.03.2018
The Respondent submitted that no cogent reasons had been stated for considering condonation of delay. It was observed that the Liquidator was aware of the claim of the Appellant as evident from the financial statements of the Corporate Debtor and that the Appellant had filed its claim in CIRP proceedings.
A two-member bench of Anil Raj Chellan, Member (Technical) And Kuldip Kumar Kareer, Member (Judicial) observed that the liquidation proceedings are still underway, and the admission of claim which is a statutory dues will not derail/protract the liquidation proceedings in respect of the Corporate Debtor. At the same time, in the interest of justice it is necessary to consider the claim of the Appellant .
While allowing the appeal, the bench condoned the delay and the Respondent is directed to consider the claim of the Appellant per law.
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