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2019 (7) TMI 464 - Tri - Insolvency and BankruptcyAppeal against the decision of liquidator - rejection of claim submitted by the Applicant as a Financial Creditor under Regulation 18 read with Form-D of the IBBI (Liquidation Process) Regulations, 2016 - Section 42 of the I&B Code - time limitation - condonation of Delay in filing application. Whether the delay in filing this application can be condoned or not? - HELD THAT:- 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 - Further, it cannot be said that the requirement of “sufficient cause” is not met out in this case as the Applicant was not sleeping over its rights, but was continuously following up with the Liquidator for the perusal of its claims and this process caused the delay in filing this application - the delay in filing this application is condoned. In the present case, what is denied by the RP is not the existence of security in the form of Pledge of shares towards the debt granted by the applicant to Borrower, but the Applicant’s status as a Guarantor/Financial Creditor of the Corporate Debtor in the light of section 5(8) of the Code. Hence, being a Secured Creditor of the Corporate Debtor, the option to move U/s 52(1)(b) of the I&B Code is always open to the Applicant for realising the security interest on its own. The Liquidator has rightly rejected the claim of the Applicant on the ground that the Applicant is not a Financial Creditor of the Corporate Debtor and the liability of the Corporate Debtor is restricted to the pledge of shares only which has already been meted with - application dismissed.
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