# In the matter of Clutch Auto Ltd. CA Nos. 197, 715, 763, 795 & 796-2018 in (IB)-15-(PB)-2017

> NCLT judgment dated 2018-09-04. Citation: TCN-2018-NCLT-00827. The case involves an appeal against the liquidator's rejection of a claim made by the applicant…

- **Court:** NCLT
- **Order date:** 4 Sept 2018
- **Citation:** TCN-2018-NCLT-00827
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/clutch-auto-ltd-ca-nos-197-715-763-795-796-2018-in-ib-15-pb-2017-e8ff9b14

## Summary

### Background

The case involves an appeal against the liquidator's rejection of a claim made by the applicant due to a delay in filing. The liquidator had issued a public notice on 2018-02-19, setting a 30-day period for claim submissions, which ended on 2018-03-18. The appellant submitted their claim based on a judgment and decree dated 2016-02-11 from a Civil Court in Aurangabad. The liquidator rejected the claim on 2018-08-04, citing that it was received after the 30-day period, thus being time-barred under Section 38(1) of the IBC, 2016.

## Facts

Clutch Auto Limited is undergoing a corporate insolvency resolution process under the IBC. A public notice was issued on 2018-02-19, setting a 30-day period for submitting claims, which ended on 2018-03-18. An applicant submitted a claim based on a judgment and decree dated 2016-02-11 from a Civil Court in Aurangabad. The liquidator rejected the claim on 2018-08-04 because it was filed after the deadline, citing Section 38(1) of the IBC, 2016. The applicant appealed, stating they were unaware of the public announcement. The court noted that the liquidation process was ongoing and other claims were under consideration. The applicant sought condonation of the delay of approximately four months in filing the claim.

## Issues and analysis

### Issue 1: Whether the delay of approximately four months in filing the claim should be condoned, allowing the …

**Ratio:** The Adjudicating Authority-NCLT is vested with the jurisdiction and power to pass any

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**Reasoning:** The court reasoned that the applicant's unawareness of the public announcement

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**Interpretation:** Section 42 read with Section 60(5) of the IBC, 2016, grants the Adjudicating

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**Application:** The court applied the ratio to the specific facts by considering the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Respondents:** Clutch Auto…
- **Advocates:** Priyanjali…; Karan B…

## Timeline

- **2018-02-19 — Public Notice…**: Liquidator issued a public…
- **2018-03-18 — Deadline for Claim…**: The 30-day period for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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