Late claims in liquidation may be considered in the interest of justice, while timelines, asset distribution, and dissolution duties remain binding.

The note concerns whether a liquidator may modify the stakeholder list to include late-filed financial claims under the liquidation regulations, and it records the Tribunal's view that such claims may be considered in the interest of justice if eligible, while no further claims are entertained. It also stresses that liquidation must be completed within the statutory timeline, with the liquidator convening the stakeholders' consultation committee, distributing assets in accordance with the priority waterfall, and filing for dissolution under Section 54. Any unclaimed proceeds or undistributed assets must be transferred to the Companies Liquidation Account before dissolution.

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Issues: Whether the Liquidator's request to admit and incorporate a belated claim in the list of stakeholders during liquidation was liable to be accepted, and what consequential directions were required for completion of the liquidation process.

Analysis: The application invoked the Tribunal's jurisdiction in liquidation proceedings to permit modification of the stakeholders' list and to deal with a claim filed much after the last date notified in the public announcement. The Tribunal noted the delay of about fourteen months and expressed satisfaction with the explanation based on the pandemic-related lockdown, particularly since the delay commenced well before the lockdown period and no claim had been filed even during the initial months of liquidation. At the same time, the Tribunal considered the interests of all stakeholders, the absence of prejudice to other stakeholders, the reported absence of realizable assets apart from cash and bank balance, and the need to conclude the liquidation without undue delay. Balancing these factors, the Tribunal accepted the request to admit the financial creditor's claim if otherwise eligible and issued directions to convene the Stakeholders' Consultation Committee, distribute the proceeds in accordance with the liquidation waterfall, and move for dissolution within a fixed timeframe.

Conclusion: The belated claim was permitted to be considered for admission if otherwise eligible, and the liquidation proceedings were directed to be completed by taking the consequential steps ordered by the Tribunal.

Final Conclusion: The application was disposed of with permission to consider the delayed claim and with binding directions for expeditious completion of liquidation and filing of the dissolution application.

Ratio Decidendi: In liquidation proceedings, a belated claim may be entertained in the interests of justice where the Tribunal finds it appropriate, but the liquidation must still be brought to a timely close through the statutory distribution and dissolution process.

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