# In the matter of Nathella Sampath Jewelry Pvt. Ltd. IA-1211-IB-2020 in CP-129-IB-2018

> NCLT judgment dated 2022-02-11. Citation: TCN-2022-NCLT-04179. M/s. Neem Tree Enterprise filed an application against the rejection of its claim of Rs.…

- **Court:** NCLT
- **Order date:** 11 Feb 2022
- **Citation:** TCN-2022-NCLT-04179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nathella-sampath-jewelry-pvt-ltd-ia-1211-ib-2020-in-cp-129-ib-2018-bf1030e7

## Summary

### Background

M/s. Neem Tree Enterprise filed an application against the rejection of its claim of Rs. 5,27,29,287 by the Liquidator of M/s. Nathella Sampath Jewellery Private Limited. The applicant had previously filed a Miscellaneous Application in MA/353/2018 in CA/129(IB)/2018, where an oral direction for admission of the claim was given, followed by an email from the Resolution Professional admitting the claim subject to change. The Corporate Debtor entered into liquidation on 03.01.2020. The applicant submitted the claim on 05.02.2020, and the Liquidator rejected it on 21.07.2020, citing expiry of the prescribed period as per IBBI regulations.

## Facts

M/s. Neem Tree Enterprise filed a claim of Rs. 5,27,29,287 against M/s. Nathella Sampath Jewellery Private Limited, which was undergoing liquidation. The claim was initially admitted subject to change, but later rejected by the Liquidator. The Corporate Debtor entered liquidation on 03.01.2020. The Liquidator rejected the claim on 21.07.2020, citing the expiry of the prescribed period. The applicant had previously filed MA/353/2018 in CA/129(IB)/2018 regarding the claim. The respondent argued that the applicant owed Rs. 23,22,533 to the Insolvency Estate and had not provided sufficient documentation. The Corporate Debtor was in possession of the premises of the Applicant's leasehold property subject to the terms and conditions of the MoU and PFA entered between them.

## Issues and analysis

### Issue 1: Whether the Liquidator was justified in …

**Ratio:** As per the provisions of the IBC, 2016, and IBBI (Liquidation Process) Regulations, 2016,

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**Reasoning:** The court noted that the rejection was communicated after the stipulated 30-day period,

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**Interpretation:** The IBC, 2016 mandates that the Liquidator record the reason in writing for

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**Application:** The court found that the Liquidator's rejection was not justified, as it was

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** M/s. Neem Tree…
- **Respondents:** M/s. Nathella…; M/s. NATHELLA…

## Timeline

- **2018-04-23 — CIRP Ord…**: Corporate Insolvency Resolution…
- **2020-01-03 — Liquidation…**: Liquidation of the…

## 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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