# In the matter of KH Foges India Pvt. Ltd.

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00794. PSL Engineering Pte. Ltd. filed an application under section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00794
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kh-foges-india-pvt-ltd-87cf87b8

## Summary

### Background

PSL Engineering Pte. Ltd. filed an application under section 60(5) of the Insolvency and Bankruptcy Code, 2016, against Mr. Navin Khandelwal, the Resolution Professional of K.H. Forges India Pvt. Ltd., challenging the rejection of its claim as a Financial Creditor. The applicant sought condonation of a 109-day delay in filing its claim, quashing of the rejection email, direction to the Respondent and Committee of Creditors to restart the CIRP process with the applicant's claim included, and admission of the applicant's claim of Rs. 2,18,10,908/- in the CIRP. The applicant, a Singapore-based company, had issued Stand By Line of Credit (SBLC) to K.H. Forges India Pvt. Ltd., which was invoked in May 2019, leading to the applicant's claim.

## Facts

PSL Engineering Pte. Ltd., a Singapore-based company, issued Stand By Line of Credit (SBLC) of SGD 2,000,000 to K.H. Forges India Pvt. Ltd. through United Overseas Bank. The SBLC was invoked in May 2019, resulting in a claim of Rs. 9 crores for PSL Engineering. K.H. Forges India Pvt. Ltd. was admitted into CIRP on 13.12.2021. The last date to submit claims was 21.01.2022. PSL Engineering filed its claim on 14.09.2022, which was rejected by the Resolution Professional (RP) on 27.11.2022 due to being beyond the limitation period. The CIRP period of 270 days was completed on 04.10.2022. Two debtors of K.H. Forges India, Shiv Amar Realty Ltd. and Raheja International, owed Rs. 1.61 crores. PSL Engineering claimed they were unaware of the CIRP due to being based in

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## Issues and analysis

### Issue 1: Whether the delay of 163 days in filing the claim by …

**Ratio:** Regulation 12(2) of the IBBI (Insolvency Resolution Process for Corporate Persons)

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**Reasoning:** The court considered the applicant's argument that they were unaware of the CIRP due to

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**Interpretation:** The regulation sets a strict timeline for submitting claims, but the court has

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**Application:** The court condoned the delay of 163 days, considering the applicant's location

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** PSL Engineering…
- **Respondents:** K.H. Forges India…; Navin Khandelwal,…

## Timeline

- **2016-07-08 — Agreement…**: Agreement between PSL Engineering Pte. Ltd. and K.H. Forges India Pvt. Ltd. for Stand By…
- **2019-05-01 — SBLC Invo…**: The Stand By Line of Credit…

## 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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