# In the matter of Cethar Limited IA(IBC)-867(CHE)-2021 in CP(IB)-511(CHE)-2017

> NCLT judgment dated 2022-07-14. Citation: TCN-2022-NCLT-01718. Jindal Saw Limited, an operational creditor of Cethar Limited (the corporate debtor), filed an…

- **Court:** NCLT
- **Order date:** 14 Jul 2022
- **Citation:** TCN-2022-NCLT-01718
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cethar-limited-iaibc-867che-2021-in-cpib-511che-2017-1bf7893c

## Summary

### Background

Jindal Saw Limited, an operational creditor of Cethar Limited (the corporate debtor), filed an application IA(IBC)/867(CHE)/2021 seeking condonation of a 1162-day delay in submitting its proof of claim to the official liquidator. The applicant also sought a direction for the official liquidator to accept the proof of claim. The CIRP against Cethar Limited was initiated on 2017-06-16, and a liquidation order was passed on 2018-04-25. The liquidator made a public announcement on 2018-04-29, requiring claims to be filed by 2018-05-29. Jindal Saw Limited had filed its claims under Form-B during the CIRP in August 2017. The applicant claimed unawareness of the liquidation until they learned about it through the IBBI website in June 2021. The liquidator rejected the

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## Facts

Jindal Saw Limited, an operational creditor, sought to condone a 1162-day delay in submitting a claim to the official liquidator of Cethar Limited. CIRP was initiated on 2017-06-16, followed by a liquidation order on 2018-04-25. The liquidator announced a claim deadline of 2018-05-29. Jindal Saw filed a claim in August 2017 during CIRP. They claimed unawareness of the liquidation until June 2021. The liquidator rejected the claim due to limitation. The applicant contacted the liquidator on 2021-06-09. The applicant submitted its claim under Form-C to the Liquidator on 2021-08-04. The liquidator sought an explanation with respect to limitation. The applicant filed a detailed reply vide e-mail dated 2021-08-05. The liquidation order was published in a Chennai newspaper

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## Issues and analysis

### Issue 1: Whether the delay of 1162 days in submitting the proof of claim by the applicant to the official …

**Ratio:** Time is of the essence under the Insolvency and Bankruptcy Code (IBC), and statutory

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**Reasoning:** The court reasoned that the delay was inordinate and unacceptable. It emphasized the

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**Interpretation:** The IBC emphasizes timely resolution and liquidation processes. The limitation

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**Application:** The court applied the principle that time is of the essence to the facts of the

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## Parties

- **Judges:** (Retd.) S.…; SAMEER…
- **Appellants:** Jindal Saw…
- **Respondents:** Cethar Li…; Official Liquidato…
- **Advocates:** K.M.A…; Mr R. Subra…

## Timeline

- **2017-06-16 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2017-08-01 — Claim Filed Du…**: Jindal Saw Limited filed its…

## 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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