# In the matter of Emsons Organics Ltd.

> NCLT judgment dated 2025-07-08. Citation: TCN-2025-NCLT-00815. The Assistant Commissioner of Central Goods and Service Tax Division-Samba filed IA No.…

- **Court:** NCLT
- **Order date:** 8 Jul 2025
- **Citation:** TCN-2025-NCLT-00815
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emsons-organics-ltd-0c05156b

## Summary

### Background

The Assistant Commissioner of Central Goods and Service Tax Division-Samba filed IA No. 1601/2023 under Section 5 of the Limitation Act, 1963, seeking condonation of a 120-day delay in filing an appeal under Section 42 of the Insolvency & Bankruptcy Code, 2016, challenging the Liquidator's rejection of their claim. IA No. 1602/2023 was also filed under Section 42 of the Code, seeking to set aside the Liquidator's rejection and direct the Liquidator to consider the claim.

## Facts

The Assistant Commissioner of Central Goods and Service Tax Division-Samba filed two applications, IA No. 1601/2023 and IA No. 1602/2023, challenging the rejection of their claim by the Liquidator of Emsons Organics Ltd.

IA No. 1601/2023 seeks condonation of a 120-day delay in filing the appeal under Section 42 of the Insolvency & Bankruptcy Code, 2016.

IA No. 1602/2023 seeks to set aside the Liquidator's rejection of the Applicant's claim dated 07.02.2023 and a direction to the Liquidator to consider the claim filed by the Applicant Department on 02.02.2023.

The Applicant Department contended that the delay was due to administrative reasons inherent in a Government Department.

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## Issues and analysis

### Issue 1: Whether the delay of 120 days in filing the appeal under Section 42 of the Insolvency & …

**Ratio:** The Tribunal cannot exercise inherent power to condone delay beyond the prescribed period

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**Reasoning:** The Applicant failed to provide any 'sufficient cause' or reasonable justification for

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**Interpretation:** The provisions under the Code are designed for expeditious resolution, and

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**Application:** The Tribunal found that the delay was not justified by sufficient cause and

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## Parties

- **Judges:** Harnam Singh…; SHISHIR A…
- **Appellants:** Assistant…
- **Respondents:** Emsons Organics…; M/s Emsons…
- **Other parties:** Prem Chand…; Parmod S…
- **Advocates:** Sunish Bi…; Pulkit…

## Timeline

- **2019-09-27 — CIRP Commen…**: The Corporate Insolvency Resolution Process…
- **2020-12-15 — Liquidation…**: The liquidation order was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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