# In the matter of Amar Nath, Liquidator for Karan Processors Pvt. Ltd. vs. Excise & Taxation Commissioner

> NCLAT judgment dated 2024-01-11. Citation: TCN-2024-NCLAT-00690. The case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLAT-00690
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amar-nath-liquidator-for-karan-processors-pvt-ltd-vs-excise-taxation-commissione-043768c5

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Chandigarh Bench, regarding an application filed by the Respondent in a Corporate Insolvency Resolution Process (CIRP) matter. The Respondent, Excise & Taxation Commissioner, filed a claim against the Corporate Debtor, M/s Karan Processors Pvt. Ltd., which was undergoing liquidation. The NCLT directed the Appellant, the liquidator, to treat the Respondent's claim under Section 53(1)(b)(ii) of the Insolvency and Bankruptcy Code (IBC) at par with the debt owed to a Secured Creditor. The liquidator rejected the claim as it was filed after the prescribed timeline. The NCLT relied on the Supreme Court's decision in State Tax Officer Vs. Rainbow Papers Limited, which held

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## Facts

M/s Ultratreat Industrial Services initiated CIRP against M/s Karan Processors Pvt. Ltd. ('Corporate Debtor') under Section 9 of the IBC. Amar Nath was appointed as the liquidator after liquidation was ordered. The Excise & Taxation Commissioner (Respondent) filed a claim in Form C after the deadline of 26.12.2020, on 01.03.2021. The Respondent's claim was based on tax dues assessed for the assessment years 2014-15 and 2016-17, amounting to Rs. 18,21,513/-. The liquidator had sent an email to all stakeholders, including the Respondent, on 02.12.2020, and a final reminder on 11.12.2020, regarding the claim submission deadline. The NCLT directed the liquidator to treat the Respondent's claim as a secured debt, relying on the Supreme Court's decision in Rainbow Papers

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## Issues and analysis

### Issue 1: Whether the NCLT was justified in directing the liquidator to treat the Respondent's claim as a …

**Ratio:** The ratio is that claims must be filed within the prescribed timeline as per the IBC and

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**Reasoning:** The NCLAT reasoned that the NCLT did not adequately consider the practical difficulties

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**Interpretation:** The interpretation involves balancing the need for timely claim submission in

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**Application:** The NCLAT applied the reasoning by setting aside the NCLT's order and remanding

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Amar…
- **Respondents:** M/s Karan…; Excise and…
- **Advocates:** Saurabh…; Amar…; +1 more

## Timeline

- **2019-01-01 — CP (IB) No. 339/Chd/Hry/…**: Respondent filed application in…
- **2020-12-02 — Email sent to…**: Liquidator sent an email to all stakeholders including the Respondent regarding the claim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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