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2023 (8) TMI 411 - SCH - Insolvency and BankruptcyCondonation of delay of 85 days in filing claim - Claim filed belatedly - liquidation process has been disposed of and third party rights have been created - HELD THAT - During the intervening period, the subject matter involved in the liquidation process has been disposed of and third party rights have been created. Therefore, the NCLT observed that the appellant herein may pursue other remedies available in law. The said order has been affirmed by the National Company Law Appellate Tribunal (NCLAT). The contention of learned counsel for the appellant that the delay could be condoned and his claim must be taken on record, cannot be accepted - Appeal disposed off.
Issues involved: Late filing of claim in insolvency proceedings, rejection of claim by Liquidator and NCLT, creation of third party rights due to disposal of subject matter.
The judgment deals with the issue of the appellant filing a claim belatedly in insolvency proceedings. The appellant filed the claim on 02.03.2022, 85 days after the last filing date of 05.12.2021. The Liquidator refused to accept the late claim, leading the appellant to approach the NCLT. The NCLT rejected the application, noting that the subject matter had been disposed of and third party rights had been created, advising the appellant to seek other remedies under the law. The NCLT's decision was upheld by the NCLAT, affirming that due to the disposal of the subject matter and creation of third party rights, the appellant should pursue other available legal remedies. The court emphasized the importance of timely claims in insolvency proceedings under the IBC to ensure a time-bound resolution of corporate insolvency. It was concluded that condoning delays in the absence of specific provisions would only prolong the insolvency process. Therefore, the contention of the appellant's counsel for condonation of the delay and acceptance of the claim was not accepted. The civil appeal was disposed of, and any pending applications were also deemed disposed of. The judgment highlights the significance of timely claims in insolvency proceedings to adhere to the objectives of the Insolvency and Bankruptcy Code, 2016.
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