# In the matter of Gemini Communication Limited IA-629-CHE-2021 in CP-699-IB-2017

> NCLT judgment dated 2022-02-15. Citation: TCN-2022-NCLT-04116. The Employees State Insurance Corporation (ESIC) filed an application (IA/629/CHE/2021) under…

- **Court:** NCLT
- **Order date:** 15 Feb 2022
- **Citation:** TCN-2022-NCLT-04116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gemini-communication-limited-ia-629-che-2021-in-cp-699-ib-2017-028510f8

## Summary

### Background

The Employees State Insurance Corporation (ESIC) filed an application (IA/629/CHE/2021) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to set aside the rejection of their claim by the Liquidator of Gemini Communication Limited and to direct the Liquidator to consider their claim. The ESIC's claim, totaling Rs. 30,81,615/-, comprised contributions, interest, and damages due from the Corporate Debtor. The Liquidator rejected the claim due to late filing, as the claim was submitted significantly after the cut-off date of 05.04.2019. The ESIC attributed the delay to a lack of knowledge within their legal department and the challenges posed by the Covid-19 pandemic.

## Facts

The Employees State Insurance Corporation (ESIC) filed a claim against Gemini Communication Limited, which was undergoing liquidation. The ESIC's claim amounted to Rs. 30,81,615/-, representing contributions, interest, and damages. The Corporate Insolvency Liquidation was ordered on 2019-02-26. The last date for submission of claims was 2019-04-05, following a paper publication on 2019-03-09. The ESIC submitted its claim in Form C on 2020-10-23, but the Liquidator rejected it due to late filing. The ESIC argued that the delay was due to a lack of knowledge within their legal department and the Covid-19 pandemic. The Liquidator argued that the claim was filed 772 days after the prescribed deadline. The Corporate Debtor's assets had already been sold in an e-auction.

## Issues and analysis

### Issue 1: Whether the delay of 772 days in submitting the claim by the Employees State Insurance Corporation …

**Ratio:** The principle of adhering to limitation periods is crucial in insolvency proceedings to

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**Reasoning:** The court reasoned that the delay of 772 days was extraordinary and that the reasons

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**Interpretation:** The interpretation is that the IBC emphasizes a time-bound process, and delays

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**Application:** In this case, the ESIC's delay of 772 days was deemed excessive, and the

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** Employees State…
- **Respondents:** Gemini Communicati…; M.S. Viswa…
- **Advocates:** S.P. Srin…; V. Maniv…

## Timeline

- **2019-02-26 — Corporate Insolvency…**: Corporate Insolvency Liquidation…
- **2019-03-09 — Paper Publi…**: Liquidator caused Paper…

## 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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