# In the matter of Bharati Defence & Infrastructure Ltd.

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00808. This is an appeal filed by the Department of State Tax against the liquidator's decision to not…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00808
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bharati-defence-infrastructure-ltd-0b5f84d3

## Summary

### Background

This is an appeal filed by the Department of State Tax against the liquidator's decision to not admit their claim in the liquidation process of M/s Bharati Defense and Infrastructure Limited. The appellant sought condonation of delay in filing the claim. The Corporate Insolvency Resolution Process (CIRP) was initiated by Edelweiss Assets Reconstruction Company Limited, and the corporate debtor was admitted to liquidation on 14.01.2019. The liquidator invited claims, with a last date of 23.02.2019. The appellant filed their claim on 20.09.2022, which was rejected by the liquidator.

## Facts

The Department of State Tax filed a claim in the liquidation process of M/s Bharati Defense and Infrastructure Limited, seeking Rs.87,11,648/- for the period of July 2017-March 2018. The CIRP was initiated on 06.06.2017, and the corporate debtor was admitted to liquidation on 14.01.2019. The last date for submitting claims was 23.02.2019, but the appellant filed their claim on 20.09.2022, resulting in a delay. The appellant argued that the delay was due to the adjudication order passed on 19.05.2022, which determined the amount payable by the corporate debtor. The liquidator rejected the claim, stating that it was filed after the prescribed deadline and could not be categorized as a secured creditor under the Maharashtra GST Act. The appellant relied on the decision in

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## Issues and analysis

### Issue 1: Whether the delay in filing the claim by the Department of State Tax in the liquidation process …

**Ratio:** The court has the discretion to condone delays if sufficient cause is shown. The delay

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**Reasoning:** The court considered the appellant's argument that the delay was due to the time taken

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**Interpretation:** The interpretation of the law allows for condonation of delay if there is a

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**Application:** The court applied the principle of condonation of delay to the specific facts

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Department of…
- **Respondents:** M/s Bharati…

## Timeline

- **2017-06-06 — CIRP Init…**: Corporate Insolvency Resolution Process initiated by Edelweiss Assets Reconstruction…
- **2019-01-14 — Liquidation Com…**: Corporate Debtor admitted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 78 — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-78)

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