Tribunal allows delay in claim submission, directs Resolution Professional to decide on admission.

The tribunal allowed the application, condoning the delay in submitting the claim and directing the Resolution Professional to decide on the claim's admission according to the law. The tribunal emphasized that condoning the delay would not impact the ongoing Corporate Insolvency Resolution Process, ensuring justice and due process in the proceedings.

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Issues:
Delay in filing claim before Resolution Professional under Section 60(5) of the Code read with Rule 11 of NCLT Rules, 2016.

Analysis:
The Applicant sought condonation of delay in filing claims before the Resolution Professional under Section 60(5) of the Code read with Rule 11 of NCLT Rules, 2016. The Applicant had filed two Proofs of Claim in Form-C on February 4, 2019, within 124 days of the Insolvency Commencement Date. However, the Resolution Professional rejected the claims on the grounds that they were submitted beyond the 90-day limit specified in Regulation 12 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Resolution Professional cited Regulation 12(2) which mandates creditors to submit claims within 90 days of the insolvency commencement date.

The key question before the tribunal was whether the delay in filing the claims could be condoned. The Applicant argued that the tribunal had the power to condone the delay under Rule 11 of NCLT Rules, 2016, and contended that the timeline prescribed under Regulation 12 was directory, not mandatory. The Applicant relied on a Supreme Court judgment to support this argument, emphasizing that certain timelines under the IBC were considered directory, not mandatory.

The tribunal considered the circumstances leading to the delay in filing the claims. It noted that the Applicant's delay was due to a lack of knowledge about submitting claims in Form-C to the Resolution Professional until informed via email on December 29, 2018. The tribunal found that the Applicant had valid reasons for the delay and that the Corporate Insolvency Resolution Process was still ongoing. It concluded that the delay could be condoned, leaving the Resolution Professional to decide on the admission of the claims based on merit.

In the final decision, the tribunal allowed the application, condoning the delay in submitting the claim and directing the Resolution Professional to decide on the claim's admission according to the law. The tribunal emphasized that condoning the delay would not impact the ongoing Corporate Insolvency Resolution Process, ensuring justice and due process in the proceedings.

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