# In the matter of BS Limited

> NCLT judgment dated 2023-08-28. Citation: TCN-2023-NCLT-01899. The case involves applications filed by the Applicant Company under Section 60(5) of the NCLT…

- **Court:** NCLT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLT-01899
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bs-limited-f193d658

## Summary

### Background

The case involves applications filed by the Applicant Company under Section 60(5) of the NCLT Rules, 2016, and Section 5 of the Limitation Act, 1963, seeking condonation of a 184-day delay in approaching the Tribunal. This delay occurred after excluding the period from 15.03.2020 to 28.02.2022, which was excluded due to a Suo Moto Writ Petition (C) No.3 of 2020. The Petitioner, IFCI Limited, a Government undertaking, had granted financial facilities of Rs.150 crores to the Corporate Debtor. An application was filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, which was admitted. An Interim Resolution Professional was appointed and later confirmed by the Committee of Creditors (CoC). The Petitioner submitted a claim that was

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## Facts

IFCI Limited, a government undertaking, extended financial facilities of Rs. 150 crores to BS Ltd. Subsequently, State Bank of India initiated insolvency proceedings against BS Ltd under Section 7 of the IBC, which were admitted. An Interim Resolution Professional (IRP) was appointed, later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC). IFCI Limited submitted its claim, which was accepted by the RP on 22.11.2018, making it a part of the CoC with a 9.448% voting share. The resolution plan was rejected by the CoC, leading to an order for liquidation on 25.10.2019, and the appointment of a Liquidator. The Liquidator rejected IFCI Limited's claim on 25.01.2021. IFCI Limited sought to appeal the Liquidator's decision but filed the

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## Issues and analysis

### Issue 1: Whether the Tribunal has the power to condone the delay of 184 days in filing an appeal against the …

**Ratio:** The ratio is that the IBC is a time-bound process, and Section 42 of the IBC provides a

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**Reasoning:** The Tribunal reasoned that the essence of the I&B Code, 2016, is speed and that the

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**Interpretation:** The interpretation of Section 42 of the IBC, read with the Supreme Court's

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**Application:** In this specific case, the petitioner's delay of 184 days in filing the appeal

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** M/S. IFCI L…
- **Respondents:** BS L…; M/s.BS Li…; +1 more

## Timeline

- **2018-11-22 — Claim Acce…**: The Petitioner's claim was accepted…
- **2019-10-25 — Liquidation…**: Order of liquidation…

## 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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