Uco Bank vs Brg Iron And Steel Company Private Limited And Ors

Jinan K.R., J

Dalmia Cement (Bharat) Ltd., an Operational Creditor, filed this un-numbered application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with rule 11 of the National Company Law Tribunal Rules, 2016 praying for issuing directions to the Liquidator for consideration of its claim which was not submitted to the Liquidator.

Heard both sides and perused the records and the defence note sent by the liquidator.

BRG Iron and Steel Company Private Limited is under liquidation vide order of this Tribunal dated 03.02.2020. Despite the liquidator causing publication of notice asking for submission of claims on 07.02.2020 with the timeline fixed as 04.03.2020, the applicant neither submitted the claim nor the liquidator rejected the claim. The applicant admittedly has submitted his claim while IRP called for claim and admittedly part of the claim was admitted by the IRP. This indicates that the applicant was aware of the proceedings pending before the Adjudicating Authority as well as the liquidation process initiated by the Liquidator.

Ld. Counsel Mr. Pranit Bag, for the applicant submitted that if the applicant submits an application for admitting the claim before the Liquidator that would be a misconceived application. According to him the applicant has no other remedy but to approach the Adjudicating Authority to kindly direct the applicant to approach the Liquidator to look after the Application.

The Ld. Counsel Mr. Rishav Banerjee for the Liquidator objected to this application contending that the application is premature. He submitted that the applicant has not submitted any claim as per the provisions of the Code and regulations and the liquidator is not at all added as a party to this application and this application is liable to be dismissed.

The foregoing discussions lead to a conclusion that the applicant never approached the liquidator with its claim and approached the AA bypassing the procedure, the applicant statutorily bound to follow. We are also not satisfied with the reason for moving like application through video conference hearing under the guise of extreme emergency when this Tribunal work is disrupted due to COVID-19 pandemic.

In view of the matter, we hold that this application is premature and not maintainable u/s. 60(5) of the Code, and hence liable to be dismissed. However, we make it clear that the order of dismissal in no way bars the applicant's right to prefer any appeal under section 42 of the Code in case the applicant's claim is rejected by the Liquidator.

C.A. (IA) No. OF 2020 IN C.P.(IB) No. 513/KB/2018 is dismissed. No order as to cost.

Registry is directed to serve copies of the order forthwith to all the parties by way of email.