# In the matter of McNally Bharat Engg Co. Limited

> NCLT judgment dated 2023-09-05. Citation: TCN-2023-NCLT-01769. NBCC (India) Limited, an operational creditor, filed an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 5 Sept 2023
- **Citation:** TCN-2023-NCLT-01769
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mcnally-bharat-engg-co-limited-ae75bfd6

## Summary

### Background

NBCC (India) Limited, an operational creditor, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking direction upon the Resolution Professional to accept its claim of Rs. 40,64,01,910. The applicant claimed it was unaware of the ongoing CIRP against McNally Bharat Engineering Company Limited, the corporate debtor, and therefore could not raise its claim before the Resolution Professional promptly. The applicant submitted its claim in Form-B on 27.02.2023, which was rejected by the Resolution Professional via email on 01.03.2023, citing a delay of 210 days in filing the claim. The applicant sought condonation of the delay and a direction for the Resolution Professional to consider its claim afresh.

## Facts

The Corporate Debtor, McNally Bharat Engineering Company Limited, was admitted into CIRP on 29.04.2022. The IRP published a public announcement on 07.05.2022, informing creditors to submit claims by 18.05.2022. Form G was published on 05.07.2022, inviting expressions of interest. The IRP sent letters to NBCC (India) Ltd. on 14.07.2022 and 13.10.2022, informing them of the CIRP and requesting payment of amounts due to the Corporate Debtor. The deadline for submitting claims was 02.08.2022. NBCC submitted its claim on 27.02.2023, after resolution plans were already under CoC consideration. The Resolution Professional rejected the claim on 01.03.2023. NBCC claimed unawareness of the CIRP, which the Resolution Professional contested. NBCC sought acceptance of its claim of

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## Issues and analysis

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

**Ratio:** Timelines are the essence of the Insolvency and Bankruptcy Code for the purpose of

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**Reasoning:** The court found that the applicant was informed of the CIRP through public announcements

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**Interpretation:** The Insolvency and Bankruptcy Code emphasizes the importance of adhering to

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**Application:** The applicant's claim of unawareness was deemed untenable, given the public

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** NBCC (India…
- **Respondents:** McNally Bharat…

## Timeline

- **2022-04-29 — CIRP Admi…**: The Corporate Debtor was admitted to…
- **2022-05-07 — Public Annou…**: The IRP published a Public Announcement in Form A, informing about the initiation of CIRP…

## 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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