Case Note & Summary
The appeal was filed by the Deputy Commissioner of Commercial Taxes, Mangaluru, against the order of the National Company Law Tribunal (NCLT) which dismissed the Appellant's application for condonation of delay in filing a claim during the liquidation of M/s Doshion Private Limited. The Corporate Debtor was engaged in water treatment and was ordered to be liquidated on 03.10.2023. The Appellant, as an operational creditor, initiated adjudication proceedings under the GST Acts and determined a tax liability of ₹8,10,000 on 21.02.2026. The Appellant filed its claim on 22.04.2026, which was rejected by the Liquidator on the grounds of being belated. The Appellant contended that the delay was due to the time taken for the adjudication process and sought condonation of the delay of 896 days. The NCLT dismissed the application, stating that the Appellant failed to establish sufficient reasons for the delay and that the claim was filed after the prescribed period. The Appellant argued that the Adjudicating Authority had erred in its reasoning and had not considered the judicial precedents supporting its application. The Appellate Tribunal found that the claim was indeed filed late and that the Adjudicating Authority had acted within its jurisdiction. It held that the claim could not be admitted as it did not comply with the timelines set by the Code and Regulations, and the Appellant's explanation for the delay was insufficient. The appeal was ultimately dismissed.
Headnote
A) Insolvency Law - Liquidation Process - Admission of Claims - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - The Appellant's claim was filed 896 days after the last date for submission, which was fixed at 08.11.2023. The Adjudicating Authority correctly dismissed the application as the claim did not fit within the time limits established by the Code and Regulations. Held that the claim could not be admitted due to the significant delay (Paras 63-64).
Issue of Consideration
Whether the claim based on the order dated 21.02.2026 can be admitted in a liquidation that began on 03.10.2023 and whether the delay of 896 days deserves to be condoned.
Final Decision
The Appellate Tribunal dismissed the appeal, affirming the NCLT's decision that the claim was filed 896 days late and that no sufficient cause was shown for condonation of the delay. The Tribunal held that the claim could not be admitted as it did not comply with the timelines set by the Code and Regulations.
Law Points
- Insolvency and Bankruptcy Code
- 2016
- Section 60(5)
- Section 42
- Liquidation Process Regulations
- Section 38(1)
- Section 39
- Section 40
- Section 53
- Central Goods and Services Tax Act
- 2017
- Karnataka Goods and Services Tax Act
- Section 74
