Tribunal orders Liquidator to re-evaluate claim, overturning dismissal and directing fair consideration.

The Tribunal directed the Liquidator to reconsider the Appellant's claim based on the submitted materials and proceed with the liquidation process accordingly. The Adjudicating Authority's dismissal of the appeal and the Liquidator's communication dated 07.01.2022 were set aside, allowing the appeal to the extent of directing the Liquidator to consider the claim on its merits.

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Issues Involved:
1. Rejection of the appellant's claim by the Liquidator.
2. Timeliness of claim submission during the liquidation process.
3. Correspondence and communication between the Appellant and the Liquidator/IRP.
4. Consideration of the Appellant's claim on merits.

Issue-Wise Detailed Analysis:

1. Rejection of the appellant's claim by the Liquidator:
The central issue revolves around the Liquidator's rejection of the Appellant's claim amounting to Rs. 12,78,65,736/-. The Liquidator communicated the rejection on 07.01.2022, stating that the claim was not submitted within the stipulated time frame as per the public announcement dated 21.01.2020. The Appellant challenged this decision, leading to the present appeal.

2. Timeliness of claim submission during the liquidation process:
The Appellant argued that the claim should not be rejected as time-barred due to the extraordinary circumstances caused by the Covid-19 pandemic. The Appellant highlighted that they had informed the IRP about their claim as early as 06.09.2017, but received no response. The Appellant missed the public announcement by the Liquidator but submitted the claim promptly upon receiving communication from the Liquidator in June 2021.

The Liquidator contended that there is no provision in the Insolvency and Bankruptcy Code (IBC) to condone the delay in claim submission during the liquidation process. The delay of 687 days was significant and could set a bad precedent.

3. Correspondence and communication between the Appellant and the Liquidator/IRP:
The Appellant maintained that they had been in continuous correspondence with the IRP and later with the Liquidator. On 10.08.2017, the IRP requested the Appellant to make payments to the Corporate Debtor's escrow account. The Appellant responded on 06.09.2017, claiming an amount of Rs. 12,20,72,608/- from the Corporate Debtor and seeking guidance on obtaining their claims.

Further communication occurred in 2021 when the Liquidator sought balance confirmation from the Appellant. The Appellant replied on 21.07.2021, stating no balance was due and reiterated their claim. The Liquidator's letter dated 30.08.2021, discussing the settlement of outstanding amounts, indicated ongoing consideration of the Appellant's claim.

4. Consideration of the Appellant's claim on merits:
The Tribunal noted that the Liquidator's rejection of the claim based solely on the timing was unsustainable. The Appellant had informed the IRP about their claim in 2017, and the Liquidator engaged in correspondence regarding the claim in 2021. The Tribunal emphasized that the claim was under active consideration and should be examined on its merits, especially since the liquidation process had not progressed to asset distribution.

The Tribunal directed the Liquidator to reconsider the Appellant's claim based on the submitted materials and proceed with the liquidation process accordingly. The Adjudicating Authority's dismissal of the appeal and the Liquidator's communication dated 07.01.2022 were set aside, allowing the appeal to the extent of directing the Liquidator to consider the claim on its merits.

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