# In the matter of Sai Infosystem (India) Ltd.

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00009. The Commercial Tax Department of the Government of Rajasthan filed an application under Section…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sai-infosystem-india-ltd-da8149d9

## Summary

### Background

The Commercial Tax Department of the Government of Rajasthan filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to quash the order dated 18.04.2022 passed by the liquidator, Parag Sheth, which rejected the department's claim as time-barred. The department argued that the delay in filing the claim was due to a lack of awareness about the liquidation proceedings and the liquidator's failure to properly notify them. The liquidator contended that the claim was filed after the expiry of the prescribed time limit as per IBBI regulations.

## Facts

The Commercial Tax Department of Rajasthan, the appellant, sought to file a claim against Sai Infosystem (India) Ltd, the Corporate Debtor, which was undergoing liquidation. The department's claim was for unpaid taxes under the Rajasthan Value Added Tax Act, 2003. The Corporate Debtor was admitted into CIRP on 30.11.2017, and the liquidation order was passed on 22.08.2019. The last date for submitting claims, as per the public announcement, was 23.10.2019. The department filed its claim on 13.04.2022, which was beyond the prescribed time limit. The liquidator rejected the claim, citing Regulation 12(2)(b) of the IBBI (Liquidation Process) Regulations, 2016, which requires stakeholders to submit claims within 30 days of the commencement of liquidation. The department

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## Issues and analysis

### Issue 1: Whether the delay in filing the claim by the Commercial Tax Department should be condoned under …

**Ratio:** Regulation 12(2)(b) of the IBBI (Liquidation Process) Regulations, 2016 mandates that

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**Reasoning:** The court found that the Commercial Tax Department filed its claim significantly after

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**Interpretation:** Section 60(5) of the IBC allows the NCLT to deal with any question of law or

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**Application:** The court applied the IBBI regulation regarding claim submission deadlines to

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## Parties

- **Judges:** Chitra Ha…; V. G. Venkata…
- **Appellants:** Commercial Tax…
- **Respondents:** Sai Infosystem…; Parag S…

## Timeline

- **2017-11-30 — CIRP Admi…**: The Corporate Debtor…
- **2019-08-22 — Liquidation…**: The order of liquidation…

## 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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