# In the matter of Harshavardhan Cotton & Synthetics Private Limited

> NCLT judgment dated 2023-11-17. Citation: TCN-2023-NCLT-00726. The Employees State Insurance Corporation (ESIC) filed an application (IA(IBC)/1264/CHE/2021)…

- **Court:** NCLT
- **Order date:** 17 Nov 2023
- **Citation:** TCN-2023-NCLT-00726
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harshavardhan-cotton-synthetics-private-limited-c0b65db5

## Summary

### Background

The Employees State Insurance Corporation (ESIC) filed an application (IA(IBC)/1264/CHE/2021) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to set aside the rejection of its claim by the Liquidator of Harshavardhan Cotton and Synthetics Private Limited. The Corporate Insolvency Resolution Process (CIRP) against Harshavardhan Cotton and Synthetics Private Limited was initiated on 2018-03-12, and liquidation was ordered on 2018-12-03. The last date for submission of claims was 2019-01-03.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Harshavardhan Cotton and Synthetics Private Limited on 2018-03-12, and liquidation was ordered on 2018-12-03. The last date for submission of claims was 2019-01-03. The Employees State Insurance Corporation (ESIC) submitted its claim on 2021-11-17, which was rejected by the Liquidator due to a delay of over 1000 days. ESIC argued the delay was due to lack of knowledge and the Covid-19 pandemic. The Liquidator had already finalized the list of stakeholders and distributed assets as per Section 53 of the IBC, 2016. The Corporate Debtor was allotted ESI code No.57000477530000101 and had defaulted in payment of ESI contribution. ESIC made a claim of Rs. 11,63,541/- towards contribution, interest, and

…

## Issues and analysis

### Issue 1: Whether the delay of over 1000 days in submitting the claim by the Employees State Insurance …

**Ratio:** The principle that 'there is no equity about limitation' as established by the Supreme

…

**Reasoning:** The Tribunal found that the delay of over 1000 days was extraordinary and that the

…

**Interpretation:** The principle of limitation ensures that claims are brought forward within a

…

**Application:** In this case, the extraordinary delay of over 1000 days was deemed

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Employees State…
- **Respondents:** Harshavardhan…; CA Mahalingam…
- **Advocates:** S.P. Srin…; M. Jayapr…

## Timeline

- **2018-03-12 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Harshavardhan Cotton and…
- **2018-12-03 — Liquidation…**: Liquidation ordered by…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harshavardhan-cotton-synthetics-private-limited-c0b65db5