# In the matter of Lifestyle Fitness Pvt. Ltd. CA-11-2020 in (IB)-310(ND)2019

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-04755. The case involves an appeal against the rejection of a claim by the Liquidator. The appellant,…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-04755
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/lifestyle-fitness-pvt-ltd-ca-11-2020-in-ib-310nd2019-abac64ed

## Summary

### Background

The case involves an appeal against the rejection of a claim by the Liquidator. The appellant, an operational creditor, had their application admitted and CIRP initiated against the corporate debtor. The initial IRP accepted the claim, but the subsequent RP (later appointed as Liquidator) rejected it due to the lack of invoices.

## Facts

An application was filed under Sec 42, IBC, 2016 against the Liquidator's decision to reject the appellant's claim.

The appellant is an operational creditor.

CIRP was initiated against the corporate debtor vide order dated 14.06.2019.

Mr. Shyam Arora was initially appointed as IRP.

The corporate debtor's appeal against the CIRP initiation was dismissed by NCLAT and the Supreme Court.

Mr. Shyam Arora was replaced by Mr. Kamal Agarwal as RP, who was later appointed as Liquidator.

The initial IRP accepted the appellant's claim.

The Liquidator rejected the claim due to the absence of invoices.

The appellant had previously challenged the rejection of the claim before the Adjudicating Authority.

The liquidation was ordered on 21.09.2022.

…

## Issues and analysis

### Issue 1: Whether the Liquidator was justified in rejecting the operational creditor's claim solely on the …

**Ratio:** The Liquidator's rejection

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**Reasoning:** The Adjudicating Authority had already admitted the CIRP based on the same documents that

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**Interpretation:** The absence of invoices is not the sole determinant for substantiating a claim,

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**Application:** The NCLT directed the Liquidator to accept the claim of the operational

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## Parties

- **Judges:** BACHU VENKAT…; Virendra Kumar…
- **Appellants:** Suman C…; M.L. Gupta…
- **Respondents:** Kamal Aggarwal,…
- **Other parties:** Shyam A…; Kamal Ag…; +1 more
- **Advocates:** Neeraj…; Aditi S…; +4 more

## Timeline

- **2019-06-14 — CIRP Init…**: CIRP was initiated against the corporate debtor…
- **2019-12-16 — Supreme Court…**: The Hon'ble Supreme Court dismissed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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