2019 (5) TMI 1953 - Tri - Insolvency and Bankruptcy

Condonation of delay in filing of claim form by the applicant - claim filed beyond the ninety days period specified in Regulation 12(2) of CIRP Regulations - HELD THAT - In CA-727(PB)/2019 in the instant Corporate Insolvency Resolution Process we have condoned the delay and have issued direction to the RP to consider a claim without rejecting it on the ground of delay. The application disposed off with a direction to the Resolution professional to take into consideration the claim made by the applicant on the basis of the award passed by the Arbitrator.

Summary

Issues involved:
Delay in filing claim form beyond specified period in CIRP Regulations.

Analysis:
The judgment pertains to an application seeking condonation of delay in filing a claim form beyond the ninety days period specified in Regulation 12(2) of CIRP Regulations. The Resolution Professional had initially ignored the claim due to the delay, prompting the applicant, Noble Resources Ltd., to seek a direction for the claim's consideration without taking the delay into account. The Tribunal noted the nature of the controversy and the precedent set in a previous case, CA-727(PB)/2019, where delay was condoned, and a similar direction was issued to the Resolution Professional. Consequently, the Tribunal passed an order in the instant matter, directing the Resolution Professional to consider the claim based on an award by the Arbitrator. Importantly, the Resolution Professional was instructed not to reject the claim on the grounds of delay, given that the CIR Process was ongoing, and no resolution plan had been approved by the Committee of Creditors (CoC) yet. The application, CA-942(PB)/2019, was disposed of accordingly.

This judgment underscores the Tribunal's authority to condone delays in filing claim forms under the CIRP Regulations. It highlights the importance of ensuring that legitimate claims are not disregarded solely due to procedural delays, especially when the insolvency resolution process is still ongoing. By instructing the Resolution Professional to consider the claim despite the delay, the Tribunal aims to uphold fairness and equity in insolvency proceedings. The decision also emphasizes the need for a balanced approach in interpreting and applying regulations to prevent undue prejudice to stakeholders involved in the resolution process. Overall, the judgment sets a precedent for addressing similar issues related to delay in filing claims within the insolvency framework, promoting transparency and adherence to the principles of natural justice.