Tribunal Grants Delay, Orders Claim Form Filing & Police Action to Protect Corporate Debtor Assets

The Tribunal allowed the delay to be condoned in the application for condonation of delay and directed the filing of the claim form by a specified date. Additionally, the Tribunal directed the Police Authorities to take immediate action against trespassers and submit a report on the next hearing date to protect the assets of the Corporate Debtor. The order emphasized the responsibilities of the Liquidator and the Police Authorities in safeguarding the assets and preventing further incidents at the factory premises.

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Issues:
1. Condonation of delay in filing an application.
2. Seeking directions under section 60(5) read with Section 35 of the Insolvency and Bankruptcy Code, 2016 regarding protection of assets.

Condonation of Delay:
In the judgment, the Tribunal addressed an application, IA 400/KB/2021, filed for condonation of delay. The Liquidator had no objection to the delay being condoned. The Tribunal, after perusing the application, allowed the delay to be condoned and directed the filing of the claim form by a specified date. It was emphasized that the Liquidator should evaluate the claim on its merit without being influenced by the delay. Consequently, IA 400/KB/2021 was disposed of.

Seeking Directions for Asset Protection:
Another issue discussed was in relation to IA No. 414/KB/2021 filed under section 60(5) read with Section 35 of the Insolvency and Bankruptcy Code, 2016. The Liquidator sought directions against the Police Authorities due to incidents of trespassing and theft at the factory premises of the Corporate Debtor. The Tribunal noted the Liquidator's efforts to secure the premises through a security agency and the recurring incidents of miscreants entering the site. Despite complaints and requests for action, the local police failed to provide adequate security, leading to further incidents. The Tribunal expressed surprise at the lack of police action, emphasizing their duty to protect citizens' lives and properties. Consequently, the Tribunal directed the Police Authorities to take immediate action against the trespassers and submit a report through an Inspector of Police on the next hearing date. The necessity for the application arose from the failure of the Police Authorities to assist the Liquidator despite statutory obligations. The order directed the respondents to take necessary action to prevent further incidents and protect the assets of the Corporate Debtor.

In conclusion, the judgment addressed the issues of condonation of delay in filing an application and seeking directions for the protection of assets under the Insolvency and Bankruptcy Code, 2016. It highlighted the responsibilities of the Liquidator and the Police Authorities in safeguarding the assets of the Corporate Debtor. The Tribunal's order emphasized the need for immediate action by the Police Authorities to prevent further trespassing and theft incidents at the factory premises.

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