# In the matter of Gail (India) Ltd. Vs. Divyesh Desai, Liquidator of Aster Silicates Ltd. CA(AT)(Ins)No. 947 of 2020

> NCLAT judgment dated 2020-11-03. Citation: TCN-2020-NCLAT-00060. The appeal was filed by Gail (India) Ltd. against the rejection of I.A. No. 295 of 2020 by…

- **Court:** NCLAT
- **Order date:** 3 Nov 2020
- **Citation:** TCN-2020-NCLAT-00060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gail-india-ltd-vs-divyesh-desai-liquidator-of-aster-silicates-ltd-ca-6343ebdb

## Summary

### Background

The appeal was filed by Gail (India) Ltd. against the rejection of I.A. No. 295 of 2020 by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad. The rejection was based on the ground that the claim was submitted belatedly. The appellant argued that lockdown restrictions imposed due to the COVID-19 pandemic caused the delay. The Adjudicating Authority found that the claim was submitted after a delay of approximately four and a half months after the closing date for submission of claims.

## Facts

Gail (India) Ltd. filed an appeal against the rejection of its I.A. No. 295 of 2020 by the National Company Law Tribunal (NCLT), Ahmedabad Bench. The NCLT rejected the application because the claim was submitted belatedly. The last date for submission of the claim was October 31, 2019, but Gail submitted the claim on May 22, 2020. Gail argued that the delay was due to lockdown restrictions imposed because of the COVID-19 pandemic, which started on March 23, 2020. The NCLAT noted that the lockdown restrictions were imposed more than four and a half months after the closing date for submission of claims. The Gas Sale Transmission Agreement between Gail and the Corporate Debtor was for the period from January 1, 2011, to December 31, 2015. The NCLAT found that the claim

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## Issues and analysis

### Issue 1: Whether the delay in submitting the claim by Gail (India) Ltd. was justified due to the lockdown …

**Ratio:** The ratio is that lockdown restrictions cannot be considered a valid reason for delay if

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**Reasoning:** The court reasoned that the lockdown restrictions were imposed on March 23, 2020, which

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**Interpretation:** The interpretation is that the court considered the timeline of events and

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**Application:** The court applied this reasoning to the specific facts of the case, noting that

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## Parties

- **Judges:** Bansi Lal…; Jarat Kuma…; +1 more
- **Appellants:** Gail Indi…
- **Respondents:** Aster Silicates…; Divyesh…

## Timeline

- **2019-10-31 — Last date for…**: The last date for submission of…
- **2020-03-23 — Lockdown restrictions…**: Lockdown restrictions were imposed…

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