# In the matter of Cethar Limited

> NCLT judgment dated 2024-02-02. Citation: TCN-2024-NCLT-02802. The Government of Tamil Nadu, through its Commercial Taxes and Registration Department, filed…

- **Court:** NCLT
- **Order date:** 2 Feb 2024
- **Citation:** TCN-2024-NCLT-02802
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cethar-limited-ff4497bf

## Summary

### Background

The Government of Tamil Nadu, through its Commercial Taxes and Registration Department, filed an application seeking condonation of a 38-day delay in filing an Interlocutory Application challenging the rejection of its claim by the Liquidator of the Corporate Debtor, M/s. Cethar Limited. The claim was initially filed before the Liquidator but was rejected for being filed beyond the stipulated 14-day period following the liquidation order. The applicant cited the COVID-19 situation and administrative delays as reasons for the delay. The respondents argued that the reasons provided by the applicant were insufficient to justify the delay.

## Facts

The Government of Tamil Nadu, through its Commercial Taxes and Registration Department, sought to condone a 38-day delay in filing an Interlocutory Application. This application challenged the rejection of their claim by the Liquidator of M/s. Cethar Limited, the Corporate Debtor. The Corporate Debtor was in the business of manufacturing boilers. CIRP was initiated against the Corporate Debtor, and liquidation was ordered on 25.04.2018. The applicant filed its claim with the Liquidator on 12.02.2020, which was rejected on 31.07.2020 because it was filed beyond the 14-day limit from the liquidation date. The applicant then filed an application before the Tribunal on 21.09.2020, which was returned for rectification. The applicant cited COVID-19 and administrative delays

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## Issues and analysis

### Issue 1: Whether the delay of 38 days in filing the Interlocutory Application challenging the rejection of …

**Ratio:** Section 42 of the Insolvency and Bankruptcy Code, 2016, stipulates that a creditor may

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**Reasoning:** The court considered the Supreme Court's orders which excluded the period from 15.03.2020

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**Interpretation:** The interpretation of Section 42 of the IBC is that appeals against a

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**Application:** In this case, the application was filed with a delay of 38 days. However, since

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Government of…
- **Respondents:** M/s Cethar…; V. Naga…

## Timeline

- **2018-04-25 — Liquidation…**: Liquidation of the Corporate…
- **2020-02-12 — Claim Subm…**: The Applicant submitted its claim…

## 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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