# In the matter of Toral Rathod vs. Gopalsamy Ganesh Babu (I.A. No.476-2023) in Company Appeal (AT) (CH) (Ins) No. 143 of 2023

> NCLAT judgment dated 2023-06-02. Citation: TCN-2023-NCLAT-00459. The appeal was filed by Mr. Toral Rathod under Section 61 of the Insolvency and Bankruptcy…

- **Court:** NCLAT
- **Order date:** 2 Jun 2023
- **Citation:** TCN-2023-NCLAT-00459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/toral-rathod-vs-gopalsamy-ganesh-babu-9ab3cc93

## Summary

### Background

The appeal was filed by Mr. Toral Rathod under Section 61 of the Insolvency and Bankruptcy Code, 2016, against the 'Impugned Order' dated 12.05.2023 in I.A. No.1522/2022 in C.P. (IB) No.75/2021. The Adjudicating Authority dismissed the application filed by the appellant seeking condonation of a 49-day delay in filing the claim under Form – C. The Corporate Insolvency Resolution Process (CIRP) of the 'Corporate Debtor' was initiated on 21.03.2022, with a public announcement on 23.03.2022, and the last date for claim submission was 04.04.2022. The claim was filed belatedly on 02.08.2022 in an incorrect form (Form – B). The Resolution Professional (RP) rejected the claim due to exceeding the 90-day period and advised approaching the Adjudicating Authority. Subsequently,

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## Facts

Mr. Toral Rathod filed an appeal against the order of the Adjudicating Authority, which dismissed his application for condonation of a 49-day delay in filing a claim. The CIRP of the Corporate Debtor was initiated on 21.03.2022, with a public announcement on 23.03.2022, and the last date for claim submission was 04.04.2022. The appellant filed the claim belatedly on 02.08.2022 in an incorrect form (Form – B) and resubmitted it in Form C on 07.08.2022. The Resolution Professional (RP) rejected the claim due to exceeding the 90-day period. The appellant argued that the claim was a 'Financial Debt' and the delay was not willful, while the respondent argued that the delay was substantial and the appellant understated the delay. The Adjudicating Authority relied on the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the Condonation of Delay of 49 days …

**Ratio:** Condonation of Delay cannot be granted as a matter of course, and a liberal approach

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**Reasoning:** The Adjudicating Authority noted that the appellant's reason for delay, seeking 'legal

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**Interpretation:** The interpretation of the law emphasizes the importance of adhering to the

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Rakesh Kuma…; Shreesha…
- **Appellants:** Toral R…
- **Respondents:** Milan Textile…; Gopalsamy Ganesh…

## Timeline

- **2022-03-21 — CIRP Init…**: The Corporate Insolvency Resolution Process (`CIRP') of the 'Corporate Debtor' was…
- **2022-03-23 — Public Annou…**: The public announcement…

## 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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