Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (4) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1987 - NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCHCondonation of delay in filing application by one of the Operational Creditors of the Corporate Debtor - filing of claim before the due date prescribed for filing of claims - HELD THAT:- Although, the liquidator in the present case is correct in rejecting such 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/her claim is accepted/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. Rule 177 and 178 of Companies (Court) Rules, 1959 deal with the procedure on failure to prove the debt within the time fixed. As per Rule 177, if any creditor fails to file proof of his debt with the liquidator within the time specified in the advertisement referred to in Rule 148, such creditor may apply to the court for relief, and the court may, thereupon, adjudicate upon the debt or direct the liquidator to do so - As per Rule 178, any creditor who has not proved his debt before the declaration of any dividend or dividends shall be entitled to be paid out of any money for the time being in the hands of liquidator available for distribution of dividend, any dividend or dividends which he may have failed to receive before that money is applied to the payment of any future dividend or dividends, but he shall not be entitled to disturb the distribution of any dividend declared before his debt was proved by reason that he has not participated therein. Because the liquidation proceedings are yet to be finalized in the present case, no prejudice will be caused if the claim of the applicant is adjudicated and admitted. The delay in submission of the claim by the Applicant deserves condonation - the delay in the submission of the claim in accordance with the provisions of code is condoned - application allowed.
|