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2021 (5) TMI 318 - Tri - Insolvency and BankruptcyClassification of applicant - unsecured creditors or not - Direction to opponent to rectify the erroneous classification of claim of Applicant as 'Unsecure' and categorize the same as 'Secured' - time limitation - HELD THAT:- On perusal of the record, it is found that on 5th July 2019, the liquidator classified the Applicant as Unsecured Financial Creditor in the liquidation process of the Corporate Debtor and in view of Section 42 of the Insolvency and Bankruptcy Code, the creditor may appeal before the Adjudicating Authority against the decision of the liquidator within 14 days on receipt of such decision. However, the present application is filed after around 551 days - The instant application is admittedly filed in much belated stage. In view of such express provisions of section 77(3) of the companies Act, 2013 and Regulation 21 of the Liquidation Regulation, the Liquidator, acting in accordance with the provisions of Section 77(3) of the Companies Act and Regulation 21 of the Liquidation Regulations, is bound to reject the claim submitted by the Applicant as a secured claim - While filing the instant application, the Applicant has miserably failed to explain the reason of delay in filing the instant application and also not prayed for any condonation of delay for the same. Time Limitation - HELD THAT:- That apart, it is also admitted fact that Applicant is always attending the CoC meeting being the member of the CoC constituted in the liquidation process of the Corporate Debtor and the liquidator in all its meeting reported all the developments in the liquidation process of the Corporate Debtor and also inviting suggestions from the members of the CoC on various aspects of the liquidation process of the Corporate Debtor, however the Applicant did not raise any objection. Thus, the Applicant cannot take to plea that he is not aware of the fact that he is classified as unsecured creditor. Instead of going into further detail of the matter, the fact remains that even after having the knowledge with regard to the classification as unsecured creditor, the Applicant has not taken any steps and filed instant application almost after 551 days, when Code provide that an appeal has to be filed within 14 days after rejection of the claim by Liquidator. Therefore, the application is barred by limitation. Under such circumstances, if the application of the Applicant will be allowed ignoring the specific Rules and Regulations of the Liquidation. In that event, the very sanctity of those provisions will be diluted and in that event there is every likelihood that number of application will come before this Adjudicating Authority for the same - application dismissed.
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