# In the matter of FLSmidth Private Limited vs. Lanco Infratech Ltd.

> NCLAT judgment dated 2024-05-03. Citation: TCN-2024-NCLAT-00459. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLAT
- **Order date:** 3 May 2024
- **Citation:** TCN-2024-NCLAT-00459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/flsmidth-private-limited-vs-lanco-infratech-ltd-d74d8eac

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging the Adjudicating Authority's order (National Company Law Tribunal, Hyderabad Bench) dated 15.10.2019. The CIRP was initiated against Lanco Infratech Ltd. based on an application filed by a financial creditor under Section 7 of IBC. The CIRP was admitted on 07.08.2017, and a Resolution Professional (RP) was appointed. Subsequently, liquidation proceedings were initiated, and Mr. Savan Godiawala was appointed by the Adjudicating Authority (NCLT, Hyderabad). The appellant, FLSmidth Private Limited, filed a claim before the IRP for Rs. 71.09 crore, which was partially admitted for Rs. 13.47 crore but later rejected by the RP. The appellant challenged this rejection before the

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## Facts

FLSmidth Private Limited (Appellant), an engineering company, supplied engineering solutions to Lanco Infratech Ltd. (Corporate Debtor). The Corporate Debtor issued a purchase order for systems worth Rs. 95.17 crore. The Corporate Debtor did not open an irrevocable letter of credit for Rs. 73.602 crores and did not take delivery of supplies. The Corporate Debtor was put under CIRP, and the Appellant filed a claim for Rs. 71.09 crore with the IRP on 21.08.2017. The IRP confirmed Rs. 13.47 crore as payable but asked for clarification on the remaining Rs. 57.65 crore. The claim was rejected by the RP. The Appellant challenged the rejection before NCLT, Hyderabad. While the IA was pending, the Corporate Debtor went into liquidation. The Appellant submitted a claim for Rs.

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## Issues and analysis

### Issue 1: Whether the Liquidator can reject a claim based on disputed facts and the need for prior …

**Ratio:** The Liquidator is required to verify claims based on available information and does not

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**Reasoning:** The Liquidator's role is to consolidate and verify claims based on available records. The

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**Interpretation:** The Liquidator's powers are limited to verifying claims based on existing

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**Application:** In this case, the Appellant's claim was based on non-performance of the

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## Parties

- **Judges:** M. Venu…; Jatindranat…
- **Appellants:** M/s. FLSmidth…
- **Respondents:** Lanco Infratech…

## Timeline

- **2017-08-07 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) proceedings were initiated against Lanco…
- **2017-08-21 — Claim Filed by…**: FLSmidth Private Limited filed a claim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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