# 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-03369. 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-03369
- **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-b6dbd0e7

## 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, citing technical grounds and the COVID-19 situation. The applicant, residing in Cuttack, faced difficulties traveling to Chandigarh. The RP also failed to consider the security deposit reflected in the Corporate Debtor's balance sheet. The applicant relied on the judgment of “Asset

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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 Sections 53 and 60 of the Insolvency and Bankruptcy Code, 2016, seeking a direction to the Resolution Professional to reconsider and pay the applicant's claim. The CIRP process was initiated on 2020-10-13. The applicant submitted a claim on 2020-10-29, which was rejected by the IRP on 2020-11-20. The applicant claimed the rejection was due to technical grounds and the COVID-19 situation. The applicant is a resident of Cuttack and faced difficulties in traveling to Chandigarh. The applicant's security deposit of Rs. 10 lakhs was reflected in the Corporate Debtor's balance sheet.

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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:** HON’BLE MR.…; SUBRATA KUM…
- **Appellants:** M/s Piyus…
- **Respondents:** M/s Eon Electric…

## Timeline

- **2020-10-13 — CIRP Init…**: The Corporate Insolvency…
- **2020-10-29 — Claim Subm…**: The applicant, M/s Piyus Enterprisers,…

## 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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