Tribunal dismisses Application for late claim in liquidation process, stresses adherence to timelines.

The Tribunal dismissed the Application seeking to condone a 725-day delay in submitting a claim to the Liquidator for an amount of Rs. 20,41,035. The Liquidator rejected the claim due to the delay, emphasizing the time-bound nature of the liquidation process and the mandatory requirement of filing claims. The Tribunal highlighted the Liquidator's duty to promptly verify claims, noted the Applicant's failure to submit the claim during liquidation proceedings, and emphasized the need to adhere to approved schemes and limitation periods. The Application was dismissed without costs, in line with the strict timelines mandated by the Insolvency and Bankruptcy Code.

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Issues:
Delay in submitting claim to Liquidator, rejection of claim by Liquidator, power of Liquidator to condone delay, time-bound nature of Liquidation process, requirement of filing claim at each stage, limitation period for claims.

Analysis:
1. The Application filed sought to condone a delay of 725 days in submitting a claim to the Liquidator, requesting admission of a claim amounting to Rs. 20,41,035. The Applicant supplied steel to the Corporate Debtor and claimed interest for delayed payment.

2. The Corporate Insolvency Resolution Process was initiated earlier, and the Applicant had filed a claim with the Resolution Professional. However, the Liquidator rejected the claim due to the delay in submission, citing lack of authority to condone such delays.

3. The Liquidator contended that the delay was unjustified, emphasizing the time-bound nature of the process. The Liquidator argued that allowing endless consideration of claims would undermine the Insolvency and Bankruptcy Code's provisions.

4. The Liquidator highlighted that the claim appeared time-barred, lacking evidence of acknowledgment of liability from the Corporate Debtor. The Liquidator stressed the mandatory requirement of filing claims and differentiated treatment for workmen/employees' claims.

5. The Tribunal noted the Liquidator's obligation to verify claims promptly and communicate decisions to creditors and the Corporate Debtor. The Applicant's failure to submit the claim during the Liquidation proceedings was also noted.

6. Referring to the National Company Law Appellate Tribunal's decision, the Tribunal emphasized the time-bound nature of the liquidation process. It highlighted the Liquidator's responsibility to conclude proceedings within a year and dismissed the Application due to the process's time constraints.

7. The Tribunal underscored the importance of adhering to the approved scheme and avoiding 'undecided' claims post-approval. Citing Supreme Court judgments, the Tribunal emphasized the non-negotiable nature of limitation periods in insolvency proceedings.

8. Ultimately, the Tribunal dismissed the Application, considering the time-bound nature of the Insolvency and Bankruptcy Code and the Liquidator's obligation to complete the liquidation process within a year. The dismissal was without costs, aligning with the strict timelines mandated by the Code.

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