Federal Bank Limited Vs C. Prabhakaran (NCLT Kochi)
The National Company Law Tribunal, Kochi Bench, adjudicated an application filed by Federal Bank Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking condonation of a delay of 470 days in submitting its claim in bankruptcy proceedings against a personal guarantor. The applicant also sought a direction to the Bankruptcy Trustee to admit and process its claim of ₹47,99,399.76.
The bankruptcy proceedings were initiated on April 18, 2024, and a public announcement inviting claims was issued on April 24, 2024. As per Section 131 of the Code, creditors were required to submit claims within the prescribed period. The applicant submitted its claim only on July 1, 2025, leading to its rejection by the Trustee on the ground of delay. The applicant contended that it had no prior knowledge of the proceedings and became aware only upon receiving an email from the Trustee on June 13, 2025. It submitted that the delay was not deliberate and occurred due to absence of notice. It further stated that no distribution of assets or dividends had taken place, and therefore admission of its claim would not prejudice any stakeholder.
The Trustee submitted that public notice had been duly issued through newspapers and creditors were expected to comply with the prescribed timeline. However, it also pointed out that the bankrupt had failed to cooperate and had not disclosed complete details of assets and liabilities. Despite repeated directions from the Tribunal and opportunities granted between October 2024 and April 2025, the bankrupt did not furnish accurate information. The existence of a residential property and its mortgage in favour of the applicant bank were disclosed only in April and May 2025. Until then, these details were not included in Form E, thereby preventing identification of the applicant as a creditor.
