NCLAT dismissed an appeal holding that a claim based on liability determined post-liquidation initiation cannot be admitted outside the statutory timeline for claims. The ruling reinforces strict compliance with claim submission timelines under the IBC.
Date of Crystallisation Doesn’t Determine Claim Filing: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal challenging the exclusion of a claim filed after the deadline specified under the Insolvency and Bankruptcy Code, 2016 (IBC). The tribunal held that the date of crystallisation of liability does not override the statutory timeline for submitting claims during liquidation proceedings.
The appeal arose from a decision by the Liquidator to reject a claim on the grounds of delay. The claimant argued that the liability only crystallised after the commencement of liquidation, based on certain post-initiation determinations. NCLAT, however, ruled that such retrospective assessment of liability cannot justify non-compliance with the time limits under Regulation 37 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016.
"The date when liability crystallises, whether before or after liquidation, is immaterial if the claim is not submitted within the stipulated period,"the tribunal observed.
The decision reaffirms the primacy of procedural timelines in liquidation and limits the scope for extending claim submission based on the nature or timing of liability determination. Practitioners must ensure claims are filed within the published deadline, regardless of when the obligation is quantified.
Citations
- In re: Matter concerning claim admission during liquidation (2026) NCLAT
