# In the matter of Viceroy Hotels Limited I.A. NO. 1204-2022 in CP (IB) No. 219-7-HDB-2017

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04376. The Deputy Director, Employees State Insurance Corporation filed an application under Section…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04376
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/viceroy-hotels-limited-ia-no-1204-2022-in-cp-ib-no-219-7-hdb-2017-63f158b9

## Summary

### Background

The Deputy Director, Employees State Insurance Corporation filed an application under Section 60 (5) of the Insolvency & Bankruptcy Code, 2016, seeking to set aside the rejection of their claim by the Resolution Professional. The Corporate Debtor, Viceroy Hotels Limited, was covered under the Employees State Insurance Act, 1948, and failed to comply with its provisions by not paying contributions. The Asset Reconstruction Company/financial creditor initiated liquidation proceedings against the corporate debtor, and the applicant filed a claim in Form-F before the Resolution Professional. The Resolution Professional rejected the claim, stating that the claim submission process closed in 2018 and they lacked the authority to accept claims.

## Facts

The Deputy Director of Employees State Insurance Corporation (ESIC) filed an application against the Resolution Professional of Viceroy Hotels Limited, seeking to set aside the rejection of ESIC's claim. Viceroy Hotels Limited, as the Principal Employer, was covered under the Employees State Insurance Act, 1948, but failed to pay contributions, interest, and damages. The Asset Reconstruction Company initiated liquidation proceedings against Viceroy Hotels Limited. ESIC filed its claim in Form-F with the Resolution Professional, who rejected it, citing the closure of the claim submission process in 2018 and lack of authorization to accept late claims. ESIC argued that the rejection was arbitrary, the dues were statutory with priority under Section 94 of the ESIC Act,

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## Issues and analysis

### Issue 1: Whether the delay in filing the present application challenging the communication dated 13.10.2022 …

**Ratio:** The law of limitation requires appeals to be filed within a time limit, and condonation

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**Reasoning:** The court reasoned that the applicant had not provided sufficient reasons for the delay

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**Interpretation:** The interpretation of the law of limitation emphasizes the importance of filing

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**Application:** In this case, the applicant failed to provide sufficient reasons for the delay

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** The Deputy…
- **Respondents:** Viceroy Hotels…; Govindarajula…

## Timeline

- **2018-03-12 — Initiation of…**: The applicant contended that the Tribunal initiated liquidation proceedings against the…
- **2018-03-16 — Publication Inviting…**: The Resolution Professional published the invitation for claims on 16.03.2018, with a…

## 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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