Delay not condoned due to careless approach of the party

Regional Provident Fund Commissioner Vs Mr. Vasudevan Resolution Professional & Liquidator of M/s. Titanium Tantalum Products Limited (NCLAT Chennai)

Held that an unpardonable lackadaisical approach/ attitude of the `Party’ in pursuing a matter before the `Competent Authority’ / `Tribunal’ is not to be accepted. Delay not condoned in such case even if the appellant being statutory organization.

Facts-

M/s. Titanium Tantalum Products Limited (Corporate Debtor) had undergone CIRP and subsequently an order for liquidation was passed on 12.06.2018. The Liquidator (Respondent) had issued a public announcement that the last date for submission of claims was 14.07.2018. The Regional Provident Fund Commissioner of the Employees Provident Fund Organization (Appellant), which is a Government functionary, submitted its claim amounting to Rs. 3,09,88,511/- on 02.02.2021 i.e. after 936 days of delay. The Liquidator rejected the Appellant’s delayed claim while stating that the liquidator had no power to condone the delay.

Accordingly, the Appellant filed an application before the NCLT Chennai Bench seeking condonation of delay of 936 days in claiming the dues under Employee’s Provident Funds and Miscellaneous Provision Act, 1952. The Appellant further sought a direction to the Resolution Professional/Liquidator to make provision in the Information Memorandum and corresponding Resolution Plan, if any, for the payment of Claim of Rs. 3,09,88,511/- due to the Appellant.

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