# In the matter of Phadnis Resorts And Spa India Ltd. IA 335 of 2021 in CP (IB) 3603-MB-C-II-2018

> NCLT judgment dated 2021-09-02. Citation: TCN-2021-NCLT-01211. The Employees State Insurance Corporation (ESIC) filed an application under Section 60(5) of…

- **Court:** NCLT
- **Order date:** 2 Sept 2021
- **Citation:** TCN-2021-NCLT-01211
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/phadnis-resorts-and-spa-india-ltd-ia-335-of-2021-in-cp-ib-3603-mb-c-ii-2018-08be33d3

## Summary

### Background

The Employees State Insurance Corporation (ESIC) filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking condonation of delay in submitting the proof of claim and a direction to the Resolution Professional (RP) to admit the claim. The ESIC's claim pertains to statutory contributions that the Corporate Debtor allegedly failed to deposit for the period of December 2015 to April 2019. The RP rejected the claim as time-barred, leading ESIC to approach the NCLT Mumbai.

## Facts

The Employees State Insurance Corporation (ESIC) filed an application against the Resolution Professional (RP) of Phadnis Resorts and Spa India Ltd., the Corporate Debtor, seeking condonation of delay in submitting the proof of claim and a direction to the RP to admit the claim. The ESIC's claim relates to unpaid statutory contributions from December 2015 to April 2019. The Corporate Debtor's Corporate Insolvency Resolution Process (CIRP) was initiated, and a moratorium was declared. The ESIC issued a show cause notice to the Corporate Debtor on 16.12.2020. The ESIC submitted its claim to the RP on 29.12.2020, which was received on 09.01.2021. The RP rejected the claim as time-barred via an email dated 09.01.2021. The ESIC argued that the lockdown from 21.03.2020

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## Issues and analysis

### Issue 1: Whether the delay in submitting the proof of claim by the Employees State Insurance Corporation …

**Ratio:** The principle of condoning delay is based on the discretion of the court, considering the

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**Reasoning:** The NCLT reasoned that the ESIC is a statutory body under the Ministry of Labour and

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**Interpretation:** The interpretation involves balancing the procedural requirements of submitting

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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:** Ashok Kumar…; Shyam Babu…
- **Appellants:** Employees State…
- **Respondents:** Phadnis Resorts…; Resolution…

## Timeline

- **2018-01-01 — CP (IB)…**: CP (IB) 3603/MB/C-II/201…
- **2019-03-14 — Petition Ad…**: Petition under Section 7 of the Code read with Rule 4 of Insolvency and Bankruptcy…

## 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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