TaxTMI 
TaxTMI 
2021 (10) TMI 939
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....t the decision of Liquidator for rejecting the claim due to delay in filing. 2. We have heard the Ld. Counsel for the Appellant and the Respondent and perused the averments made in the memo of appeal and reply. 3. The Appellant based on the representations of the directors of the Corporate Debtor (CD) granted unsecured loan in January 2016 to the tune of Rs. 6,92,89,068 including interest [Principal Rs. 4,84,00,000 (pg 26 Form D) plus interest Rs. 2,08,89,068]. 4. The Corporate Insolvency Resolution Process (CIRP) was initiated against the CD on 29.08.19 and the Liquidation application was admitted on 29.07.2020. The Liquidator in terms of Regulation 12(1) of Insolvency and bankruptcy Board of India (Liquidation Process) Regulations, 201....
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.... were lying in the office which was physically shut on account of ongoing pandemic and also on account of grave health risk. 7. The Liquidator has filed reply dated 17.03.21 and has submitted that the decision of the Liquidator in rejecting is well reasoned and there is no provision in the IBC enabling the Liquidator to condone the delay and receive a claim in filing a belated claim. Further, it is stated that the Appellant failed to demonstrate sufficient cause in filing the claim after the stipulated timeline in the terms of Regulation 12(2) of Liquidation Regulations and the Appellant has filed the present appeal with ulterior motives as being the husband of Ms. Nandini Singh, Suspended Director of CD who had knowledge of the commenceme....
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....day on which the appeal is filed." 10. The Liquidator in the present case rejected a time barred application for filing claim as he does not have any authority to entertain the same. However, Section 42 comes to the rescue of a claimant when his claim is rejected by the Liquidator. The claimant can file an appeal before the Adjudicating Authority against such decision of the Liquidator within fourteen days of the receipt of such decision. It is relevant to refer the Section 42 of IBC which is reproduced below: "42. Appeal against the decision of liquidator: A creditor may appeal to the Adjudicating Authority against the decision of the liquidator accepting/rejecting the claims within fourteen days of the receipt of such decision." 11. W....