# In the matter of Hema Engineering Industries Ltd. CA-18-2023 & IA-2367-2023 in IB-900-ND-2020

> NCLT judgment dated 2023-06-16. Citation: TCN-2023-NCLT-02904. This is an appeal filed under Section 42 of the Insolvency and Bankruptcy Code, 2016, read with…

- **Court:** NCLT
- **Order date:** 16 Jun 2023
- **Citation:** TCN-2023-NCLT-02904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hema-engineering-industries-ltd-ca-18-2023-ia-2367-2023-in-ib-900-nd-2020-9db2e112

## Summary

### Background

This is an appeal filed under Section 42 of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, against the decision of the Liquidator, dated 30.01.2023, rejecting the claims of M/s Shri Lakshmi Srinivas Enterprises. The Liquidator rejected the claim filed by the Applicant on the ground of a delay of 218 days in submitting the claim in Form-C.

## Facts

P.R rolling Mills Pvt. Ltd. is the Operational Creditor/Applicant. M/s. Hema Engineering Industries Ltd is the Corporate Debtor/Respondent. M. Ranjitham, Proprietor of M/s. Sri Lakshmi Srinivas Enterprises, is the Appellant/Stakeholder-Creditor. Mr. Vikas Garg is the Liquidator for M/s Hema Engineering Industries Ltd. The Liquidator rejected the claims of M/s Shri Lakshmi Srinivas Enterprises, citing a delay of 218 days in submitting the claim in Form-C. The applicant filed an appeal under Section 42 of the IB Code, 2016.

## Issues and analysis

### Issue 1: Whether the delay of 218 days in submitting the claim …

**Ratio:** The court has the discretion to condone

…

**Reasoning:** The court considered the submissions of the counsels appearing for both the Applicant and

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**Interpretation:** Section 42 of the IB Code, 2016, read with Rule 11 of the NCLT Rules, 2016,

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**Application:** Given the facts and circumstances, the court applied its discretion to condone

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M. Ranj…
- **Respondents:** M/s. Hema…
- **Advocates:** M A Chinn…; C. Ruba…; +5 more

## Timeline

- **2023-01-30 — Rejection of…**: The Liquidator rejected the claims of…
- **2023-06-16 — Order Pron…**: The NCLT allowed the appeal, condoning the delay and directing the Liquidator to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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