# In the matter of Biotor Industries Ltd.

> NCLT judgment dated 2024-01-18. Citation: TCN-2024-NCLT-03006. This case involves an appeal filed by the Applicants, representing 271 workmen, against the…

- **Court:** NCLT
- **Order date:** 18 Jan 2024
- **Citation:** TCN-2024-NCLT-03006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/biotor-industries-ltd-1e859b32

## Summary

### Background

This case involves an appeal filed by the Applicants, representing 271 workmen, against the Respondent, the Resolution Professional/Liquidator of Biotor Industries Ltd. The Applicants challenged the rejection of their claims for salary, provident fund, and gratuity. The Corporate Debtor had ceased business operations in June 2010, and liquidation commenced on December 31, 2018. The liquidator rejected the claims based on the argument that the dues were beyond the permissible period under the IBC, and the factories were closed since April 2010.

## Facts

The Corporate Debtor, Biotor Industries Ltd., ceased business operations in June 2010. Liquidation commenced on December 31, 2018. The Applicants, representing 271 workmen, submitted claims to the Respondent, the Resolution Professional/Liquidator, in Form F by RPAD and E-mail dated 07.02.2019. The Liquidator requested rectification of defects, specifically the liquidation commencement date, via email dated 11.02.2019. The Liquidator rejected the claims via email dated 02.03.2019, stating that the IBC allows dues only for a period of two years/one year prior to the liquidation commencement date. The Respondent also requested proof of employment for the two years preceding the liquidation commencement date, which was not provided. The Applicants filed an appeal against

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## Issues and analysis

### Issue 1: Whether the Liquidator was justified in …

**Ratio:** The Liquidator is required to verify claims based on the information supplied by the

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**Reasoning:** The Applicants failed to provide sufficient evidence to substantiate their claims, such

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**Interpretation:** The Liquidator's role is to verify claims based on available information and

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**Application:** The Liquidator was justified in rejecting the claims as the Applicants failed

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## Parties

- **Judges:** Shri. Kuldip…; Shri. Anil Raj…
- **Appellants:** Rakesh J. Shah &…
- **Respondents:** Biotor Industries…; Sanjay Kumar…

## Timeline

- **2010-06-01 — Corporate Debtor Ceased…**: Biotor Industries Ltd.…
- **2010-04-01 — Factories…**: The factories of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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