High Court allows service benefits despite delay invoking Rule 177, Official Liquidator directed to adjudicate.

The High Court of Rajasthan allowed the applicant's claim for service benefits despite a delay of 24 days in submission. The court invoked Rule 177 of the Companies (Court) Rules, 1959, to condone the delay, directing the Official Liquidator to entertain and adjudicate the claim. The application was disposed of in favor of the applicant.

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Issues: Delay in submission of claim for service benefits by the applicant.

In this judgment by the High Court of Rajasthan, the court heard the applicant's counsel and the Official Liquidator regarding the admission of the application. The respondent's counsel waived the service of notice, and with the consent of both parties, the application was taken up for final hearing. The court noted that the applicant failed to submit their claim for service benefits dues in time, as invited by the Official Liquidator from the creditors of the company in liquidation. The applicant submitted the claim 24 days after the deadline, but satisfactorily explained the delay. The court invoked Rule 177 of the Companies (Court) Rules, 1959, to condone the delay and allowed the application. The Official Liquidator was directed to entertain the claim and adjudicate it according to the law. Consequently, the application was disposed of, favoring the applicant.

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