NCLT Bengaluru Condones Delay Of 1191 Days In Submission Of Proof Of Claim By SEBI Before Liquidator
The National Company Law Tribunal (NCLT), Bengaluru Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), has condoned the delay of 1191 days in submission of proof of claim by Securities and Exchange Board of India (“SEBI”) before the Liquidator of Corporate Debtor. The Liquidator has been directed to consider the belated claim...
The National Company Law Tribunal (NCLT), Bengaluru Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), has condoned the delay of 1191 days in submission of proof of claim by Securities and Exchange Board of India (“SEBI”) before the Liquidator of Corporate Debtor. The Liquidator has been directed to consider the belated claim since the Liquidation process is ongoing.
Background Facts
M/s Falcon Tyres Ltd. (“Corporate Debtor”) was admitted into Corporate Insolvency Resolution Process (“CIRP”) by the NCLT. Subsequently, on 30.12.2019 the NCLT ordered liquidation of the Corporate Debtor. On 01.01.2020, the Liquidator issued a public announcement and the last date for submission of claim was fixed on 29.01.2020. The Securities and Exchange Board of India (“SEBI”) filed a belated claim with the Liquidator after 1191 days of delay. The Liquidator rejected SEBI’s claim on the ground of delay.
SEBI field an application before the NCLT seeking condonation of delay of 1191 days in submission of the proof of claim before the Liquidator.
NCLT Verdict
The Bench opined that the belated claim was rightly rejected by the Liquidator. However, since the Liquidation process is still ongoing, the Bench condoned the delay and directed the Liquidator to consider the claim of SEBI.
“In the circumstances, and for the reasons mentioned in the application and since the liquidation is still going on, the instant I.A. is allowed as under:
- The delay in preferring the claim by the Applicant is condoned;
- b. The Liquidator is directed to consider the claim of the Applicant in accordance with the Code and Regulations made thereunder and to pass an appropriate order within one week from the date of receipt of this order and communicate the same to the Applicant forthwith thereafter;”
The application has been disposed of.
Case Title: M/s. Edelwiss Assets Reconstruction Co. Ltd. v M/s. Falcon Tyres Ltd.
Case No.: C.P. (IB) No.14/BB/2017
Counsel for Applicant: Ms. Shriraja and Ms. Bhavani K.
Counsel for Respondent: Shri Tamoghna.