# In the matter of Prithvi Ferro Alloys Private Limited I.A. (IB) No……..-KB-2020 Connected to C.P. (IB) 140-KB-2019

> NCLT judgment dated 2020-06-11. Citation: TCN-2020-NCLT-01186. Nitesh Sagarmal Jain, representing M/s Bhairav Metals, filed an application under Section 60(5)…

- **Court:** NCLT
- **Order date:** 11 Jun 2020
- **Citation:** TCN-2020-NCLT-01186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prithvi-ferro-alloys-private-limited-ia-ib-no-kb-2020-connected-to-cp-ib-140-kb-acc236d9

## Summary

### Background

Nitesh Sagarmal Jain, representing M/s Bhairav Metals, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the rejection of their claim by the Resolution Professional (RP) of Prithvi Ferro Alloys Private Limited (Corporate Debtor undergoing CIRP). The applicant contended that the public announcement of the CIRP was published in Kolkata newspapers, while their office is in Mumbai, leading to a delay in filing the claim. The RP rejected the claim as it was submitted beyond the 90-day period from the CIRP commencement date, as per Regulation 12(2) of the CIRP regulations.

## Facts

Mr. Nitesh Sagarmal Jain, representing M/s Bhairav Metals, filed a claim with the Resolution Professional (RP) of Prithvi Ferro Alloys Private Limited, a Corporate Debtor undergoing CIRP. The claim was rejected by the RP because it was filed beyond the 90-day period from the CIRP commencement date, as stipulated by Regulation 12(2) of the CIRP regulations. The applicant argued that they were unaware of the CIRP initiation because the public announcement was published in Kolkata newspapers, while their office is located in Mumbai. The applicant had placed a purchase order with the Corporate Debtor on 19th October 2016, made an advance payment of Rs. 10 Lakhs, but the goods were not supplied, nor was the advance repaid. The CIRP commencement date is implied to be around

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in rejecting the claim of the applicant, M/s …

**Ratio:** Regulation 12(2) of the CIRP regulations stipulates that the RP cannot accept any claim

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**Reasoning:** The RP rejected the claim based on the strict interpretation of Regulation 12(2), as the

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**Interpretation:** The court interpreted Regulation 12(2) in light of the specific facts of the

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**Application:** The court found that there was a reasonable cause for the delay and that the

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## Parties

- **Judges:** Jinan…
- **Appellants:** Nitesh Sagarmal…
- **Respondents:** Prithvi Ferro…; Samir Kumar…

## Timeline

- **2016-10-19 — Purchase Orde…**: The applicant, M/s Bhairav Metals, placed a purchase order on the Corporate Debtor for…
- **N/A — Advance Payme…**: The applicant made an advance payment of Rs. 10 Lakhs to the Corporate Debtor as per the…

## 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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