# In the matter of Smartec Build Systems Private Limited

> NCLT judgment dated 2023-12-14. Citation: TCN-2023-NCLT-00238. The case involves an application by a creditor of Smartec Build Systems Pvt Ltd, the Corporate…

- **Court:** NCLT
- **Order date:** 14 Dec 2023
- **Citation:** TCN-2023-NCLT-00238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/smartec-build-systems-private-limited-80621299

## Summary

### Background

The case involves an application by a creditor of Smartec Build Systems Pvt Ltd, the Corporate Debtor (CD), seeking to set aside the rejection or dismissal of their claim by the Liquidator. The applicant claims to have filed their claim of Rs 27,08,620 on 02.03.2023, within 30 days of becoming aware of the CIRP proceedings after receiving an email from the Liquidator on 02.02.2023. The CIRP commenced on 29.03.2019, and a Resolution Professional (RP) was appointed. Due to the company having no assets, the Committee of Creditors (CoC) passed a resolution for liquidation, which was ordered by the Adjudicating Authority on 13.11.2019. The Liquidator made public announcements in Form-B on 06.12.2019.

## Facts

Usha International Limited, a creditor of Smartec Build Systems Pvt Ltd (the Corporate Debtor), filed a claim of Rs 27,08,620 with the Liquidator on 02.03.2023. The creditor became aware of the Corporate Insolvency Resolution Process (CIRP) proceedings on 02.02.2023, after receiving an email from the Liquidator. The CIRP had commenced on 29.03.2019, and a Resolution Professional was appointed. The Committee of Creditors (CoC) resolved for liquidation due to the company's lack of assets, and the Adjudicating Authority ordered liquidation on 13.11.2019. The Liquidator made public announcements on 06.12.2019. The creditor's claim was submitted more than 3 years after the public notice, resulting in a delay of 1182 days. The Liquidator has filed an IA for the dissolution

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## Issues and analysis

### Issue 1: Whether the application by the creditor to set aside the rejection/dismissal of their claim by the …

**Ratio:** Regulation 12(2) of the IBBI (Liquidation Process) Regulations 2016 stipulates that a

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**Reasoning:** The court reasoned that the applicant's claim was submitted with an extraordinary delay

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**Interpretation:** The regulation is interpreted to mean that creditors must act diligently and

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**Application:** The court applied the regulation to the facts of the case, noting that the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Usha International…
- **Respondents:** Smartec Build…; Sanjay Kumar…

## Timeline

- **2019-03-29 — CIRP Commen…**: The Corporate Insolvency…
- **2019-11-13 — Liquidation…**: The Adjudicating Authority passed an order for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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