Condonation of delayed insolvency claim allowed where sufficient cause was shown and the resolution process was still pending.

Delay in filing a creditor's Form-C claim in a corporate insolvency resolution process may be condoned where sufficient cause is shown and the resolution process remains pending. The Tribunal noted that the claim had not yet been examined on merits by the Resolution Professional and that allowing condonation would not prejudice the ongoing process. It therefore condoned the delay and directed that the claim be considered by the Resolution Professional in accordance with law.

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Issues: Whether the delay in filing the creditor's claim before the Resolution Professional could be condoned and the claim be directed to be considered in accordance with law.

Analysis: The application was for condonation of delay in filing Form-C before the Resolution Professional under the insolvency resolution process. The claim had been filed beyond the period stated in Regulation 12 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, but the applicant explained the delay and relied on the fact that the corporate insolvency resolution process was still pending. The Tribunal accepted that the claim had not been examined on merits by the Resolution Professional and that condonation of delay would not prejudice the ongoing process. It held that the delay could be condoned and that the Resolution Professional should thereafter decide the claim in accordance with law.

Conclusion: The delay in filing the claim was condoned and the claim was left to be considered by the Resolution Professional according to law.

Ratio Decidendi: A delay in submission of an insolvency claim may be condoned where sufficient cause is shown and the resolution process is still pending, leaving the Resolution Professional to decide the claim on merits in accordance with law.

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