NCLAT reprimands Excise Dept for delay in filing claims; causing loss to exchequer
The National Company Law Appellate Tribunal (NCLAT) has chastised the Excise and Taxation Department of Haryana government for its negligence and complacency in filing appeal on time and causing huge loss to the state exchequer.
The case is related to insolvency process of ARGL Ltd, where the Excise Department failed to submit its claims on time. The excise department had moved NCLAT asking it to condone the delay of 307 days in filing claims on the ground of completion of inter-departmental procedures.
The NCLAT while dismissing the appeal of the Excise Department of Haryana reprimanded it for its lackadaisical attitude in filing claims and termed it as absurd that the department is seeking condonation of delay.
“Complacency on the part of those at the helm of affairs in causing the appeal to be filed on behalf of Appellant, which happens to be the Excise and Taxation Department of Government of Haryana, after such huge delay cannot be a legal consideration warranting condonation of delay,” said the appellant tribunal.
The tribunal observed that the appeal has not been filed within the prescribed period of 30 days or even within the extended period of 45 days.
“It is unfortunate that complacency/negligence on the part of public functionaries would result in causing a huge loss to the State Exchequer but that would not warrant condonation of delay impermissible within the ambit of Section 61(3) of the Insolvency and Bankruptcy Code 2016,” said the NCLAT.
The appellant tribunal further said that apart from the fact that the remedy by way of appeal is barred for being hit by limitation as aforesaid, resolution plan of H-1 having been approved without any modification by the adjudicating authority, and the claim having not been filed by appellant within the prescribed timelines, even on merit there is no ground to interfere with the impugned order
The insolvency process of ARGL Ltd was completed on 02 December 2019 with the NCLT giving approval to the resolution application of Investment Opportunities IV Pte Ltd. The successful resolution applicant — Investment Opportunities IV Pte Ltd – had paid Rs 485 crore against total admitted claims of Rs 1,212 crore.
