Time-bound liquidation claims cannot be compelled into admission when filed late and without explanation.
A belated claim filed after commencement of liquidation was not entitled to admission outside the statutory claims process under the Insolvency and Bankruptcy Code and the Liquidation Process Regulations. The liquidator must verify claims within the prescribed framework and record reasons for any rejection, subject to appeal, but a stale claim cannot be compelled to be entertained where no explanation for delay is given. The time-bound nature of liquidation also justified refusal to keep the process open for indefinitely delayed claims. The request to interfere with the liquidation process was therefore rejected.
Issues: Whether a claim filed belatedly after commencement of liquidation could be directed to be admitted by the liquidator, and whether the liquidation process being time-bound justified refusal to entertain the application.
Analysis: The claim was required to be submitted in the liquidation process in the manner prescribed under the Insolvency and Bankruptcy Code, 2016 and the Liquidation Process Regulations, 2016. The liquidator was obliged to verify the claim within the prescribed time and to record reasons for any rejection, with a statutory remedy of appeal against such rejection. The application was filed after the liquidation claims process had already commenced, and no explanation for the delay was furnished. The order also noted that liquidation is intended to be concluded within a fixed time frame and that the liquidator cannot be compelled to keep entertaining stale claims indefinitely. Reference was made to the bar of limitation and the absence of supporting acknowledgment for extension of limitation. The challenge relating to the compromise scheme was not separately examined because that issue had already been dealt with in an earlier order.
Conclusion: The belated claim could not be directed to be accepted, and the request to interfere with the liquidation process was rejected.
Final Conclusion: The application failed in light of the statutory scheme governing liquidation, which requires timely filing and verification of claims within a disciplined and expeditious insolvency process.
Ratio Decidendi: In liquidation, claims must be filed and pursued within the statutory framework and prescribed timelines, and a stale or unexplained delayed claim cannot be compelled to be admitted contrary to the time-bound scheme of insolvency law.
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