NCLAT has ruled that a claim based on liability determined after liquidation initiation cannot be admitted if filed outside the claims deadline, rejecting reliance on the date of crystallisation.
NCLAT Rejects Post-Liquidation Claim Filed Beyond Timeline
The National Company Law Appellate Tribunal (NCLAT) dismissed an appeal challenging the rejection of a claim in a liquidation proceeding, holding that the date of crystallisation of liability does not override the statutory timeline for claim submission under Section 53 of the Insolvency and Bankruptcy Code, 2016.
The appellant argued that its claim accrued only after the determination of liability during liquidation. However, NCLAT clarified that claims, even those contingent or unascertained, must be filed within the deadline notified by the Liquidator under Regulation 37 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
A claim cannot be admitted merely because the quantum was determined post-initiation; the liability must have existed on the liquidation commencement date.
This ruling reinforces procedural discipline in liquidation and limits judicial discretion to admit late claims. Legal practitioners must ensure clients file claims—even provisional or contested ones—within the notified window to preserve rights, regardless of when the liability is quantified.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 53
- IBBI (Liquidation Process) Regulations, 2016, Reg. 37
