# In the matter of State of Tamil Nadu vs. S. Muthuraju

> NCLAT judgment dated 2025-12-16. Citation: TCN-2025-NCLAT-00611. The case involves a Company Appeal against the rejection of the Appellant's claim by the…

- **Court:** NCLAT
- **Order date:** 16 Dec 2025
- **Citation:** TCN-2025-NCLAT-00611
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/state-of-tamil-nadu-vs-s-muthuraju-63d69f54

## Summary

### Background

The case involves a Company Appeal against the rejection of the Appellant's claim by the Liquidator of M/s. Sri NagaNanthana Mills Ltd. The Appellant, State of Tamil Nadu, filed a claim for tax liabilities arising from assessment years 2003-2004 to 2016-2017. The claim was rejected by the Liquidator due to non-compliance with the prescribed form, inconsistency with I&B Code regulations, and being barred by limitation.

## Facts

The Appellant, State of Tamil Nadu, filed a claim for tax liabilities against the Corporate Debtor, M/s. Sri NagaNanthana Mills Ltd.

The Corporate Debtor was placed under liquidation by an order dated 21.06.2018.

The Liquidator rejected the Appellant's claim on 17.02.2020 due to non-compliance with the prescribed form, inconsistency with I&B Code regulations, and being barred by limitation.

The Appellant filed applications seeking to set aside the rejection order and condone the delay in filing an appeal under Section 42 of the I&B Code.

The Learned Adjudicating Authority rejected the Appellant's applications by an order dated 20.03.2024.

The Appellant filed a Company Appeal challenging the rejection order, along with an application seeking condonation of delay in re-filing.

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## Issues and analysis

### Issue 1: Whether the Appellant's claim was rightly rejected by the Liquidator due to non-compliance with the …

**Ratio:** Regulation 16(1) of the IBBI (Liquidation Process) Regulations, 2016 and Section 42 of

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**Reasoning:** The Liquidator rejected the claim because it was not filed in the prescribed form, was

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**Interpretation:** The regulations and code mandate that claims must be submitted in the

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**Application:** The Appellant's claim was not in the prescribed format, was inconsistent with

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** State of Tamil…
- **Respondents:** M/s Sri Naganantha…; S. Muth…
- **Advocates:** P. Sat…

## Timeline

- **2018-06-21 — Liquidation…**: Corporate Debtor placed…
- **2018-06-27 — Public N…**: Liquidator issued a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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