# In the matter of Fortuna Projects (India) Pvt. Ltd. I.A. No.63 of 2023 in C.P. (IB)No.131-BB-2017

> NCLT judgment dated 2023-05-25. Citation: TCN-2023-NCLT-03171. The Deputy Commissioner of Commercial Taxes (Audit) filed an application under Section 42 &…

- **Court:** NCLT
- **Order date:** 25 May 2023
- **Citation:** TCN-2023-NCLT-03171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fortuna-projects-india-pvt-ltd-ia-no63-of-2023-in-cp-ibno131-bb-2017-9527d214

## Summary

### Background

The Deputy Commissioner of Commercial Taxes (Audit) filed an application under Section 42 & 60(5)(c) of the IBC, 2016, read with Section 5 of the Limitation Act, 1963, and Rule 11 of the NCLT Rules, 2016, seeking to condone a delay of 1130 days in submitting a claim in the liquidation process of Fortuna Projects (India) Pvt. Ltd. The applicant was responsible for assessing the company under the KVAT Act for the assessment years 2010-11 and 2011-12. Reassessment orders were passed, and demand notices were issued, but no payment was made. Liquidation proceedings were initiated against the company, and the respondent was appointed as the liquidator. The applicant initially submitted the claim in the wrong form, leading to the delay.

## Facts

The Deputy Commissioner of Commercial Taxes (Audit) was responsible for assessing Fortuna Projects (India) Pvt. Ltd. under the KVAT Act for the assessment years 2010-11 and 2011-12. After reassessment orders and demand notices, the company failed to make the payments. Liquidation proceedings were initiated against the company on 25.10.2019, and Mr. Shivadutt Bannanje was appointed as the liquidator. The liquidator issued a public announcement on 05.11.2019, setting 04.12.2019 as the last date for submitting claims. The applicant inadvertently submitted the claim in Form B on 17.03.2020 instead of Form C, leading to a delay. The applicant then submitted a fresh claim in Form C on 07.01.2023, with a delay of 1130 days. The liquidator rejected the claim due to the delay

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## Issues and analysis

### Issue 1: Whether the delay of 1130 days in submitting the claim by the Deputy Commissioner of Commercial …

**Ratio:** The court has the discretion to condone delays if there is sufficient cause and the delay

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**Reasoning:** The court considered that the delay was due to an inadvertent mistake in submitting the

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**Interpretation:** The court interpreted the provisions of the IBC and the Limitation Act to allow

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**Application:** The court applied the principle of condonation of delay to the specific facts

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Deputy Commissione…
- **Respondents:** Fortuna Projects…; Fortuna Projects…; +1 more

## Timeline

- **2019-10-25 — Order for Liquidation…**: Adjudicating Authority passed an order ordering initiation of liquidation proceedings…
- **2019-11-05 — Public Annou…**: Liquidator issued a public announcement under Regulation 12 of the IBBI (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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