Belated claims by genuine allottees in liquidation condonable despite 847-day delay if payments reflected in debtor records and no prejudice, payable from unclaimed liquidation funds held by IBBI.

ORDER

1. This appeal bearing Appeal No. 02/2024 in CP(IB) 45/ALD/2019 has been filed on 28.08.2024 by the Appellants, who claim to be Financial Creditors under the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as “IBC, 2016/the Code”) under section 42 of the Code, read with Rule 11 of the NCLT Rules, 2016 seeking appropriate directions against Mr. Alok Kumar Kuchhal, Liquidator (hereinafter referred to as the “Respondent”) of Ratandeep Infrastructure Private Limited (hereinafter referred to as the “Corporate Debtor”) praying for the following reliefs:

a. To direct the Learned Liquidator to consider the claim of the Financial Creditor/ Appellant and accept the same;

b. To condone the delay of 847 days in filing claim with the liquidator;

c. To stay the process of distribution of funds in the liquidation process of the Corporate Debtor.

d. To pass such other order or orders as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case.

2. It is submitted that the Appellants jointly purchased Unit No. 203, Silver Homes, GH-02, Jaipuria Township, Opposite Columbia Asia Hospital, Ghaziabad-201002, for which an Allotment Letter dated 09.08.2016 was issued by the Corporate Debtor. The unit was purchased for a total consideration of Rs. 25,87,000/-, out of which the Appellants paid Rs. 8,20,000/- in four tranches and receipts were issued by the Corporate Debtor. According to the Appellants, the total claim amount is Rs. 13,12,000/-, comprising Rs. 8,20,000/- as the principal amount paid in 2016 and Rs. 4,92,000/- as interest @12% per annum.

3. It is submitted that the Audited Financial Statements for the financial year 31.03.2018 of the Corporate Debtor also shows the amount of Rs.5,93,579/- (Rupees Five Lakh, Ninety-Three Thousand, Five Hundred and Seventy-Nine Only) deposited by the Appellant No.1 with the Corporate Debtor.

4. The Appellants submit that since payments were made through the banking channel and reflected in the accounts of the Corporate Debtor, they were under the bona fide impression that their liability was duly accounted for and that they would receive the benefit of their payments. It is stated that only upon receiving an email dated 07.06.2024 from the Respondent requesting verification of documents for the purpose of distribution, the Appellants submitted the requisite documents on 29.06.2024. Despite submission of documents and subsequent reminders, including email dated 20.08.2024, no communication regarding acceptance or rejection of the claim was received.

5. The Appellants state that after not receiving any response, they personally visited the office of the Respondent on 24.08.2024 to inquire about their claim, whereafter the Respondent, vide email dated 26.08.2024, rejected their claim on the ground that it was filed belatedly relying on Regulation 12 of the IBBI (Liquidation Process) Regulations, 2016, wherein the last date of submission of claims after the liquidation order dated 01.02.2022 was 02.03.2022. The relevant excerpts from the email dated 26.08.2024 by the Liquidator are as follows:

“Dear Sir, This is in reference to the process of distribution of funds in the liquidation process of Ratandeep Infrastructure Private Limited, wherein you've visited the office of Liquidator on 24.08.2024 and an email was also sent to you from the office of Liquidator on 07.06.2024.

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