# In the matter of Municipal Corporation Faridabad Vs. Sajeve Bhushan Deora & Ors. Company Appeal (AT) (Insolvency) No. 1007 of 2021

> NCLAT judgment dated 2021-12-08. Citation: TCN-2021-NCLAT-00019. The Municipal Corporation Faridabad filed an appeal against an order dated 01.04.2021 passed…

- **Court:** NCLAT
- **Order date:** 8 Dec 2021
- **Citation:** TCN-2021-NCLAT-00019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/municipal-corporation-faridabad-vs-sajeve-bhushan-deora-ors-company-appeal-97e74d23

## Summary

### Background

The Municipal Corporation Faridabad filed an appeal against an order dated 01.04.2021 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench, which rejected I.A. No. 1221/2021 filed by the Appellant. The I.A. was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the Liquidator to accept the claim of the Municipal Corporation Faridabad and to conduct a fresh valuation of the Corporate Debtor's land. The Adjudicating Authority rejected the application, leading to this appeal.

## Facts

The Municipal Corporation Faridabad filed an appeal against an order by the Adjudicating Authority (National Company Law Tribunal) rejecting I.A. No. 1221/2021. The I.A. was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor, M/s Forging Pvt. Ltd., was subject to CIRP initiated on 28.03.2018. The Corporate Debtor owned land in Faridabad. A demand letter dated 14.01.2021 was issued by the Municipal Corporation Faridabad to M/s Forging Pvt. Ltd. through the Liquidator for outstanding External Development Charges up to 31.12.2020. The Liquidator denied the demand on 29.01.2021. The Appellant filed I.A. No. 1221/2021 on 26.02.2021. The Adjudicating Authority directed liquidation of the Corporate Debtor on 26.10.2018. Advertisement

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the Appellant's application for …

**Ratio:** A claim must be filed before the Liquidator or Resolution Professional in accordance with

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**Reasoning:** The court reasoned that the prayer made in the application could not have been granted

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**Interpretation:** The interpretation is that the statutory process of claim submission as per the

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**Application:** Since the Municipal Corporation Faridabad did not file a claim before the

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## Parties

- **Judges:** Ashok Bh…; Jarat Kuma…; +1 more
- **Appellants:** Municipal…
- **Respondents:** M/s Forging Pvt.…; Sajeve Bhushan…

## Timeline

- **2018-03-28 — CIRP Init…**: CIRP was initiated against the Corporate Debtor – ‘M/s Forging Pvt. Ltd. by order dated…
- **2018-10-26 — Liquidation…**: By subsequent order dated 26.10.2018, the Adjudicating Authority directed for liquidation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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