Strict compliance in liquidation claims bars condonation of inordinate delay and invalid forms from being entertained

In insolvency liquidation proceedings, an inordinate delay in filing a claim cannot be condoned by invoking equity where the process is strictly time-bound; the 672-day delay was not condoned. A claim submitted in Form F, instead of the prescribed liquidation claim form, did not comply with the governing regulations and was treated as non est, so it could not be entertained as a valid stakeholder claim.

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Issues: (i) Whether the extraordinary delay of 672 days in lodging the claim before the liquidator could be condoned under the Insolvency and Bankruptcy Code, 2016; (ii) whether a claim filed in Form F instead of the prescribed liquidation claim form could be accepted as a valid claim.

Issue (i): Whether the extraordinary delay of 672 days in lodging the claim before the liquidator could be condoned under the Insolvency and Bankruptcy Code, 2016.

Analysis: The claim was submitted long after the liquidation commencement date, and the delay was far beyond the period stated by the applicant. The principles governing limitation were applied strictly, and the time-bound nature of the insolvency framework weighed against any indulgence in condoning such an excessive delay.

Conclusion: The delay was not condoned.

Issue (ii): Whether a claim filed in Form F instead of the prescribed liquidation claim form could be accepted as a valid claim.

Analysis: The claim was filed in a form meant for the corporate insolvency resolution process, whereas the liquidation process required compliance with the prescribed liquidation claim procedure. The incomplete and incorrectly filed claim was therefore treated as not in accordance with the governing regulations.

Conclusion: The claim was held to be non est and incapable of being entertained.

Final Conclusion: The application seeking condonation of delay and inclusion of the applicant as a stakeholder in the liquidation process failed, and no relief was granted.

Ratio Decidendi: In insolvency and liquidation proceedings, an inordinate delay in filing a claim cannot be condoned by invoking equity, and a claim that is not presented in the prescribed statutory form is not maintainable.

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