Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(NCLAT) 480

NATIONAL COMPANY LAW APPELLATE TRIBUNAL
ASHOK BHUSHAN, J
L & L Partners Litigation, Through Authorized Representatives Harneet Singh Chandhoke and Sudhir Sharma – Appellant
Versus
Jalesh Kumar Grover, RP of Grandstar Realty Pvt. Ltd. – Respondent
Company Appeal (AT) (Insolvency) No. 1944 of 2025

Advocates:
For the Appellants/Petitioners:Mr. Sudhir Makkar, Sr. Advocate
For the Respondents: Mr. Abhishek Anand, Mr. Karan Kohli, Ms. Palak Kalra

Delayed claims by commercial entities post-CIRP announcement and CoC approval not condonable; must reflect in records or protected encumbrances to be admissible as financial debt.

Headnote:Under the Insolvency and Bankruptcy Code, 2016 (IBC), claims must be filed within the stipulated period during Corporate Insolvency Resolution Process (CIRP). The facts involve a legal firm claiming allotment of units from a prior owner in lieu of fees, after assets were sold via SARFAESI auction to the corporate debtor with a specified list of protected allottees. The court found no record of the claimant's name in the encumbrance list attached to the sale certificate, and the claim was filed post-resolution plan approval. Key issues: Whether delay in filing claim post-CIRP public announcement and CoC approval of resolution plan should be condoned, and whether the claim qualifies as financial debt. Ratio: CIRP is time-bound; commercial entities cannot claim condonation for significant delays after deemed knowledge via public announcement (S.15 IBC); claims not reflected in records or protected encumbrances (per sale certificate under SARFAESI) are inadmissible; allotment in lieu of services lacks disbursement for time value of money (S.5(8) IBC). Appeal dismissed; NCLT order upheld rejecting claim admission.

Table of Content
1. background facts of asset sale and cirp initiation. (Para 2)
2. parties' arguments on delay condonation and claim validity. (Para 3 , 4 , 5)
3. claim inadmissible absent inclusion in sale encumbrance list. (Para 6 , 7 , 12 , 13 , 14 , 15)
4. no condonation for commercial entity's post-coc delay. (Para 8 , 9 , 10 , 11)
5. no financial debt without monetary disbursement. (Para 16 , 17 , 18 , 19 , 20)
6. appeal dismissed upholding claim rejection. (Para 21)

J U D G M E N T

ASHOK BHUSHAN, J.

This appeal has been filed by the appellant challenging the order dated 17.10.2025 passed by the adjudicating authority (National Company Law Tribunal, New Delhi, Court V, Division Bench) dismissing the I.A. No.1439/2025 filed by the appellant.

2. Brief facts of the case necessary to be noticed for deciding the appeal are:

i. The appellant is a legal firm rendering legal services to the Company M/s. AKME Projects Limited. M/s. Akme Projects Limited has obtained financial facilities amounting to Rs.63 crore from the Yes Bank. Account of AKME Projects Limited was declared as Non-Performing Asset (NPA) by Yes Bank. AKME Projects Limited has mortgaged its land admeasuring 9.856 acres.

ii. Appellant claims that AKME Projects Limited in its Project AKME Raga Limited allotted 3 flats to the appellant on 09.03.2015 in lieu of appellant’s professional legal fee.

iii. Yes Bank issued a notice under Section 13(2) of the SARFAESI Act, 2002 to M/s. AKME Projects Limited on 23.09.2024.

iv. The Bank filed an application under Section 14 of the SARFAESI Act, 2002 before the District Magistrate, Gurgaon, Haryana for taking possession of the asset/property. v. In the application which was filed by the Yes Bank, AKME Projects Limited appeared before the District Magistrate and filed the reply. It was pleaded that auction process by the Bank will adversely affect the rights of third parties.

vi. The AKME Projects Limited itself annexed the list of 221 allottees in its reply. The District Magistrate passed an order on 10.11.2025, observing that secured creditors is entitled to take possession of the assets.

vii. In the SARFAESI proceedings, the assets of the AKME Projects Limited was auctioned in favour of corporate debtor – Grandstar Reality Pvt. Ltd. A sale certificate was issued in favour of Grandstar Reality Pvt. Ltd. dated 19.07.2016. Along with the sale certificate, a list of encumbrances was also attached as Annexure 1, which contained the list of 221 allottees. Sale of the schedule property was made free from all encumbrances except flats allotted to respective allottees as per list attached as Annexure 1.

viii. The Corporate Insolvency Resolution Process (CIRP) against the corporate debtor commenced on 26.09.2023 in C.P. (IB) No.995/PB/2020. Interim Resolution Professional (IRP) issued a public announcement in ‘Form-A’ inviting claim till 10.10.2023. Insolvency proceedings were challenged by suspended director, which challenge was dismissed, the date for submitting claim was extended till 26.05.2024. IRP issued Request for Resolution Plan (RFRP) on 10.06.2024.

ix. Resolution plans were considered and in the 15th CoC Meeting held on 15.11.2024, the resolution plan was approved. On 29.11.2024, the Resolution Professional (RP) filed application for approval of the resolution plan before the NCLT.

x. The appellant filed its claim before the RP on 09.01.2025. In the claim, appellant claims to be allottee of 3 units. RP has sent a reply on 13.02.2025 refusing to admit the claim. RP informed that since the appellant claims allotment of flat in exchange of legal counsel fee, claim was not secured by the Yes Bank and does not find mention in the order dated 10.11.2015 passed by District Magistrate, Gurgaon.

xi. RP advised the appellant to file claim in the CIRP of AKME Projects Limited. Appellant after rejection of its claim has filed the I.A.1439/2025 seeking condonation of delay in filing the claim and direction to RP to admit the claim. The said application cam

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2026 Supreme(Online)(NCLAT) 480

NATIONAL COMPANY LAW APPELLATE TRIBUNALASHOK BHUSHAN, JL & L Partners Litigation, Through Authorized Representatives Harneet Singh Chandhoke and Sudhir Sharma – AppellantVersusJalesh Kumar Grover, RP of Grandstar Realty Pvt. Ltd. – RespondentCompany Appeal (AT) (Insolvency) No. 1944 of 2025

Delayed claims by commercial entities post-CIRP announcement and CoC approval not condonable; must reflect in records or protected encumbrances to be admissible as financial debt.

Cases Referred (1)