Case Law Details
Department of State Tax Vs Essar Project (India) Limited (NCLT Mumbai)
Conclusion: Condonation of 92 days delay due to medical difficulty of officer in charge was allowed as liquidation proceedings were still underway, and the admission of claim which was a statutory dues would not derail/protract the liquidation proceedings in respect of the Corporate Debtor.
Held: Department of State Tax through the Assistant Commissioner of State Tax, Mumbai 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 for a sum of Rs.103,74,91,150/- in accordance with the provision of the Code. Respondent submitted that there was a delay of 93 days in submission of the claim with the liquidator and 358 days delay for the purpose of preferring this application under Section 42 of the Code. Thus, there was an aggregate delay of 451 days in the case. Respondent further submitted that no cogent reasons had been stated for considering condonation of delay. It was held that 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. The reason/grounds stated by the Appellant for condonation of delay are sufficient cause for condonation of delay. The delay in submission of this Application against the rejection of claim by the Liquidator was also condonable by the Adjudicating Authority. The liquidation proceedings were still underway, and the admission of claim which was a statutory dues would not derail/protract the liquidation proceedings in respect of the Corporate Debtor. At the same time, in the interest of justice it was necessary to consider the claim of the Appellant. The rejection of claim solely on the ground of delay would not be justified in the facts and circumstances of the case.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
1. The present appeal is filed by 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.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
