# In the matter of Thiru Arooran Sugars Limited

> NCLT judgment dated 2023-08-02. Citation: TCN-2023-NCLT-02205. The Government of Tamil Nadu, represented by Tmt. G. Bharathy, Assistant Commissioner (ST),…

- **Court:** NCLT
- **Order date:** 2 Aug 2023
- **Citation:** TCN-2023-NCLT-02205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/thiru-arooran-sugars-limited-ed982188

## Summary

### Background

The Government of Tamil Nadu, represented by Tmt. G. Bharathy, Assistant Commissioner (ST), filed IA(IBC)/969(CHE)2021 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to set aside an order dated 26.04.2021 passed by the Respondent/Liquidator. This order partially admitted the Applicant's claim as an Operational Creditor. Concurrently, IA(IBC)/1066(CHE)2021 was filed seeking condonation of an 84-day delay in filing the Interlocutory Application challenging the partial rejection of the claim by the Liquidator. The Corporate Debtor, M/s. Thiru Arooran Sugars Limited, was assessed for the years 2011-12 to 2017-18 under the Tamil Nadu Value Added Tax Act, 2006, and the Central Sales Tax Act, 1956, and was found liable for Rs.1,53,57,958/-. The

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## Facts

The Government of Tamil Nadu, represented by Tmt. G. Bharathy, Assistant Commissioner (ST), filed applications IA(IBC)/969(CHE)2021 and IA(IBC)/1066(CHE)2021 in relation to the liquidation of M/s. Thiru Arooran Sugars Limited. The applications contested the liquidator's decision to partially reject the claim for CST dues amounting to Rs.35,55,969/- for the assessment year 2017-18. The applicant sought condonation of an 84-day delay in filing the application to challenge the liquidator's decision. The Corporate Debtor was assessed for the years 2011-12 to 2017-18 under the Tamil Nadu Value Added Tax Act, 2006, and the Central Sales Tax Act, 1956, and was found liable for a sum of Rs.1,53,57,958/-. The liquidation process commenced on 08.04.2021. The applicant had filed

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## Issues and analysis

### Issue 1: Whether the delay of 84 days in filing the Interlocutory Application challenging the partial …

**Ratio:** The principle is that delays can be condoned if sufficient cause is shown, but the

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**Reasoning:** The Tribunal accepted the Liquidator's plea that admitting a new claim after the approval

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**Interpretation:** The interpretation of the law is that while delays can be condoned, the

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**Application:** In this case, the delay of 84 days was deemed significant because the Scheme

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** The Government of…
- **Respondents:** Thiru Arooran…; Ramakrishnan…
- **Advocates:** C. Hars…; A. A…; +2 more

## Timeline

- **2019-06-07 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Thiru Arooran Sugars…
- **2019-06-07 — Moratorium Im…**: Moratorium came into…

## 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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