# In the matter of Shiv Manufacturing Pipes Pvt. Ltd.

> NCLT judgment dated 2023-07-19. Citation: TCN-2023-NCLT-02450. Total Tools & Equipments (P) Ltd. filed an application against Mr. CA Sandeep D. Maheshwari,…

- **Court:** NCLT
- **Order date:** 19 Jul 2023
- **Citation:** TCN-2023-NCLT-02450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shiv-manufacturing-pipes-pvt-ltd-03f8774e

## Summary

### Background

Total Tools & Equipments (P) Ltd. filed an application against Mr. CA Sandeep D. Maheshwari, the liquidator of Shiv Mfg. Pipes Pvt Ltd., under Section 42 and 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to set aside the rejection of their claim, condone a 3-day delay in filing the application, and direct the liquidator to admit their claim as an operational creditor. The applicant claimed they were unaware of the liquidation order and the public announcement for claims, and their claim was rejected due to delay. The applicant argued they had submitted their claim to the Resolution Professional during the CIRP process but received no intimation about its fate.

## Facts

Shiv Mfg. Pipes Pvt Ltd. is the Corporate Debtor. Total Tools & Equipments (P) Ltd. (Applicant) claimed that the Corporate Debtor placed orders for goods, which the Applicant supplied and delivered. The principal amount of Rs.3,99,854/- was due and payable with interest. The Applicant issued a legal notice dated 2019-07-19, but the Corporate Debtor failed to pay. CIRP was initiated against the Corporate Debtor, and Mr. Rajendra Ramnarain Agrawal was appointed as Interim Resolution Professional (IRP). The last date for submission of claims was 2019-12-03. The Applicant claimed unawareness of the order and advertisement until March 2020 due to the COVID-19 lockdown. The Applicant sent their claim to the IRP on 2020-10-16, received on 2020-10-22. The Applicant

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the power to allow the submission of a claim to the …

**Ratio:** Section 42 of the Code gives power to the Adjudicating Authority to allow the submission

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**Reasoning:** The court referred to Section 42 of the Code, which empowers the Adjudicating Authority

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**Interpretation:** Section 42 of the IBC provides the adjudicating authority with the discretion

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**Application:** The court applied Section 42 to the facts of the case, recognizing that the

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Total Tools &…
- **Respondents:** Shiv Mfg. Pipes…; CA Sandeep D.…
- **Advocates:** Nilesh…

## Timeline

- **2019-07-19 — Legal Notice…**: Applicant Company issued legal notice…
- **2019-10-25 — CIRP Init…**: Tribunal admitted the Application and initiated the Corporate Insolvency Resolution…

## 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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