Case Law Details
Toral Rathod Vs Gopalsamy Ganesh Babu (NCLAT Chennai)
NCLAT Chennai held that condonation in filing of claim under Form-C based on bald explanation without sufficient cause for the delay is not allowable.
Facts- This Appeal is preferred by Mr. Toral Rathod/the Appellant under Section 61 of the Insolvency and Bankruptcy Code, 2016, (The Code), against the Impugned Order dated 12.05.2023 whereby the Tribunal/Adjudicating Authority has dismissed the said Application filed by the Appellant/Applicant herein seeking Condonation of Delay of 49 days in filing of the Claim under Form – C.
Conclusion- It is clear that the actual time period of delay in submitting the Claim Form is 125 days. It is also significant to mention that the Appellant approached the Adjudicating Authority, vide I.A. 1522/22 with a further delay of 100 days, and the only reason that was given is that they were seeking legal advise, which the Adjudicating Authority has rightly held is only a bald explanation and does not construe a `sufficient cause for the delay’.
Held that the Appellant has given no substantial grounds to condone the delay. IBC is a time bound process, which has been repeatedly held by the Hon’ble Supreme Court in a catena of Judgements and at the cost of repetition, the explanation given by the `Appellant’ herein is neither `substantial’ nor can be construed as a `sufficient cause’.
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