Appeal seeking condonation of delay in filing dismissed under IBC. Time-bound nature emphasized.

The Tribunal dismissed the appeal seeking condonation of an 18-day delay in filing under Section 42 of IBC, 2016 against the Liquidator's order. The Applicant, an Operational Creditor, failed to file a claim during the Liquidation process, leading to rejection by the Liquidator. The Tribunal emphasized the time-bound nature of IBC, requiring separate claim filings for CIRP and Liquidation stages. Citing a Supreme Court case, the Tribunal highlighted the Liquidator's obligation to complete liquidation within a year, resulting in the dismissal of the appeal without costs.

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Issues:
Delay in filing appeal under Section 42 of IBC, 2016 against the order of the Liquidator.

Detailed Analysis:
1. The Application (IA/326/2020) sought to condone an 18-day delay in filing the Appeal under Section 42 of IBC, 2016 against the Liquidator's order. The main Application (IA/496/IB/2020) was filed by M/s. Laxmi Engineering Works aggrieved against the Liquidator's order. The Corporate Insolvency Resolution Process (CIRP) was initiated in 2017, and the Applicant submitted a claim during CIRP. However, the Applicant failed to file a claim during the Liquidation process. The Liquidator admitted a part of the claim but rejected a subsequent claim due to delay.

2. The Liquidator's rejection was based on the delay in submitting the claim, which was almost one and a half years after the liquidation process commenced. The Liquidator stated that without the Tribunal's permission, the list of stakeholders could not be altered. The Applicant, an Operational Creditor, failed to adhere to the mandatory requirement of filing claims during the Liquidation process.

3. The IBC mandates Claimants to submit claims to the Liquidator in a specified form and manner, with supporting documents. The Liquidator must verify claims within the specified time limits, either admitting or rejecting them. The Liquidator's decision must be communicated to the creditors and the Corporate Debtor promptly. Section 42 of IBC provides a 14-day window to appeal the Liquidator's decision.

4. Workmen and employees' claims are required to be admitted based on the Corporate Debtor's books of accounts. However, no such relaxation is granted to Operational Creditors. Filing claims during the Liquidation process within the stipulated time is mandatory. The mere entry of debt in the Corporate Debtor's books is not sufficient evidence for claim admission.

5. The IBC treats CIRP and Liquidation as separate stages, requiring separate claim filings. The Applicant failed to provide sufficient reasons for the delay in filing the claim before the Liquidator. The Liquidation process is time-bound, and the Liquidator must explain any delays after one year.

6. Citing a Supreme Court case, the Tribunal dismissed the Application, emphasizing the time-bound nature of the IBC and the Liquidator's obligation to complete the liquidation process within a year. The Application was dismissed without costs due to the lack of equity about limitation in the IBC's time-bound process.

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