# In the matter of Appu Hotels Limited IA/519/CHE/2021 in IBA/1459/2019 along with other IAs

> NCLT judgment dated 2021-07-15. Citation: TCN-2021-NCLT-01712. The case involves multiple applications filed by Operational Creditors and a Financial Creditor…

- **Court:** NCLT
- **Order date:** 15 Jul 2021
- **Citation:** TCN-2021-NCLT-01712
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/appu-hotels-limited-ia519che2021-in-iba14592019-along-with-other-ias-6cbf1fe9

## Summary

### Background

The case involves multiple applications filed by Operational Creditors and a Financial Creditor against M/s. Appu Hotels Limited, the Corporate Debtor, under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016. The Operational Creditors sought condonation of delay in submitting their claims to the Resolution Professional (RP), while the Financial Creditor sought adjudication and admission of its claim. The applications were filed due to the rejection of claims or non-admission of claims by the RP. The Corporate Insolvency Resolution Process (CIRP) had already been initiated, and a Resolution Plan was pending approval before the Adjudicating Authority.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Appu Hotels Limited. Several Operational Creditors filed applications seeking condonation of delay in submitting their claims to the Resolution Professional (RP). These creditors claimed they were unaware of the CIRP initiation due to limited circulation of paper publications and lockdown restrictions. The applications included IA/247/CHE/2021 (Aspri Spirits Pvt. Ltd.), IA/248/CHE/2021 (Vinspri Distributors Pvt. Ltd.), IA/446/CHE/2021 (Balaji Foods), IA/447/CHE/2021 (New Kwality Dairy), and Cont. A/03/CHE/2021 (Crescent Sea Foods). The RP argued that the claims were submitted after the prescribed timelines and that admitting them would disrupt the resolution process. A Financial Creditor, R.

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## Issues and analysis

### Issue 1: Whether the delay in submitting claims by the …

**Ratio:** The IBC mandates specific timelines for the completion of the CIRP and the submission of

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**Reasoning:** The Tribunal reasoned that the Operational Creditors' delay in submitting claims could

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**Interpretation:** The legal issue revolves around the interpretation of the IBC and IBBI

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

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** R. Nata…
- **Respondents:** M/s. Appu Hotels…; Radhakrishnan…

## Timeline

- **2020-05-05 — CIRP Init…**: The Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) in relation to…
- **2020-05-09 — Paper Publi…**: The Interim Resolution Professional (IRP) caused paper publication in Economic Times,…

## 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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