# In the matter of SLO Industries Limited IA(IBC)-665 & 666(CHE)-2022 in CP-1264-IB-2018

> NCLT judgment dated 2023-06-13. Citation: TCN-2023-NCLT-02963. The case involves an application (IA(IBC)/665(CHE)/2022) filed under Section 42 and 60(5) of…

- **Court:** NCLT
- **Order date:** 13 Jun 2023
- **Citation:** TCN-2023-NCLT-02963
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/slo-industries-limited-iaibc-665-666che-2022-in-cp-1264-ib-2018-1528edcc

## Summary

### Background

The case involves an application (IA(IBC)/665(CHE)/2022) filed under Section 42 and 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016, seeking condonation of delay of 13 days in filing the application. Additionally, IA(IBC)/666(CHE)/2022 is an appeal filed under Section 42 of IBC, 2016, against the rejection of a claim order passed by the Liquidator on 19.03.2022. The applicant, Group 1 Security Services, supplied goods to the Corporate Debtor, SLO Industries Limited, during the CIRP period. The Liquidator partially accepted the claim of the applicant for Rs.61,740/- but rejected the claim of Rs.3,07,233/-, stating that the RP had not approved the invoices. The applicant contends that the RP claimed GST input Tax Credit on these

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## Facts

Group 1 Security Services (Applicant) filed an application seeking condonation of delay of 13 days in filing an appeal under Section 42 of the IBC, 2016. The applicant also filed an appeal against the rejection of a claim order by the Liquidator of SLO Industries Limited (Corporate Debtor). The CIRP was initiated on 04.11.2019, and liquidation was ordered on 21.01.2022, appointing S. Palaniappan as the Liquidator. The applicant supplied goods to the Corporate Debtor between 02.08.2021 and 02.02.2022. The Liquidator partially accepted the claim of the applicant for Rs.61,740/- but rejected the claim of Rs.3,07,233/-, stating that the RP had not approved the invoices. The applicant argued that the RP claimed GST input Tax Credit on these invoices, implying approval. The

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## Issues and analysis

### Issue 1: Whether the delay of 13 days in filing the application under Section 42 of IBC, 2016 should be …

**Ratio:** The court has the discretion to condone

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**Reasoning:** The court found the reason stated by the

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**Interpretation:** Section 42 of IBC, 2016 allows for appeals against decisions of the liquidator.

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**Application:** The court accepted the applicant's explanation that the authorized signatory

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** GROUP 1 SECURITY…
- **Respondents:** SLO Industries…; CA.S. Palan…

## Timeline

- **2019-11-04 — CIRP Init…**: CIRP in respect of the Corporate…
- **2022-01-21 — Liquidation…**: Tribunal ordered for Liquidation of the Corporate Debtor and appointed Mr. S. Palaniappan…

## 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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