Late claim rejected in corporate debtor liquidation process under Insolvency and Bankruptcy Code

The tribunal dismissed the application for the admission of a claim in the liquidation process of a corporate debtor under the Insolvency and Bankruptcy Code, 2016. The claim was rejected as time-barred due to being submitted after the specified deadline, with reasons such as pandemic-related delays deemed unsubstantiated. The tribunal found the claim not maintainable based on the agreement period between the parties and other factors, ultimately concluding that there was no valid reason to allow the claim at such a delayed stage.

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Issues:
Admission of claim in the liquidation process of a corporate debtor under the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:
1. Background: The application under Section 42 & 60(5) of the Insolvency and Bankruptcy Code, 2016 was filed for the admission of a claim in the liquidation of a specific corporate debtor, M/s. Aster Silicates Limited.

2. Chronology of Events: The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor, and after the expiry of the CIRP period with no resolution plan received, an application for liquidation was filed. The last date for submitting claims was set, and the applicant filed its claim after a significant delay due to reasons including the pandemic situation.

3. Claim Rejection: The claim was rejected by the respondent on the grounds that it was time-barred, as it was submitted after the specified deadline, and the agreement between the applicant and the corporate debtor was limited to a specific period.

4. Judicial Decision: After considering the arguments presented by both parties, the tribunal found the application not maintainable due to several reasons:
- The claim was submitted well after the deadline for claim submission.
- The pandemic-related delay was deemed unsubstantiated.
- The discrepancy in publication locations was not a valid reason.
- The claim was considered time-barred based on the agreement period between the parties.

5. Conclusion: The tribunal dismissed the instant application, stating that there was no valid reason to allow the admission of the claim at such a delayed stage, considering the established facts and circumstances.

This detailed analysis highlights the key aspects of the judgment regarding the admission of a claim in the liquidation process of a corporate debtor under the Insolvency and Bankruptcy Code, 2016, emphasizing the grounds for rejection and the final decision of the tribunal.

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