# In the matter of EON Electric Limited IA No. 1630-2022 in CP (IB) No. 211-Chd-Hry-2019

> NCLT judgment dated 2023-05-15. Citation: TCN-2023-NCLT-03363. The application was filed by Mrs. Bandita Rath against Mrs. Ritu Rastogi under Section 53 and…

- **Court:** NCLT
- **Order date:** 15 May 2023
- **Citation:** TCN-2023-NCLT-03363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/eon-electric-limited-ia-no-1630-2022-in-cp-ib-no-211-chd-hry-2019-1964fe24

## Summary

### Background

The application was filed by Mrs. Bandita Rath against Mrs. Ritu Rastogi under Section 53 and 60 of the Insolvency and Bankruptcy Code 2016, seeking a direction to the Resolution Professional to reconsider and pay the applicant's claims. The CIRP process was initiated on 2020-10-13, with Mr. Vishva Deep Sharma as IRP. The applicant submitted a claim via email and hard copy on 2020-10-29. The IRP replied via email on 2022-10-30 but rejected the claim on 2020-11-20 without reason. The applicant's claim was rejected on technical grounds during the COVID-19 situation. The applicant, residing in Cuttack, faced difficulties attending Chandigarh to file an application. The RP also failed to consider the claim, which was reflected as a security deposit in the Corporate

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## Facts

M/s Piyus Enterprisers, through its Proprietor, Bandita Rath, filed an application against M/s Eon Electric Limited, represented by Ritu Rastogi. The application, IA No. 639/2021, was filed under Section 53 and 60 of the Insolvency and Bankruptcy Code, 2016, seeking a direction to the Resolution Professional to reconsider and pay the applicant's claims. The CIRP process was initiated on 2020-10-13. The applicant submitted the claim on 2020-10-29, but the IRP rejected it on 2020-11-20. The rejection was allegedly due to technical grounds and the COVID-19 situation. The applicant is a resident of Cuttack and faced difficulties in attending Chandigarh. The claim amount was reflected as a security deposit in the Corporate Debtor's balance sheet. The respondent contended

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## Issues and analysis

### Issue 1: Whether the Resolution Professional should be directed to reconsider the claim of the applicant, …

**Ratio:** The principle is that claims should be considered on their merits, especially when there

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**Reasoning:** The court reasoned that the original filing and rejection of the claim occurred during

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**Interpretation:** This implies a flexible approach to procedural compliance during times of

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**Application:** The court applied this principle by directing the Resolution Professional to

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Piyus…
- **Respondents:** M/s Eon Electric…

## Timeline

- **2020-10-13 — CIRP Init…**: Corporate Insolvency…
- **2020-10-29 — Claim Subm…**: Applicant submitted claim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 53 — Distribution of assets](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-53)

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