2023 (9) TMI 1430 - AT - Insolvency and Bankruptcy

NCLAT rejects delay condonation for 14-day late IBC Section 61 appeal filing lacking sufficient cause

Srei Infrastructure Finance Ltd. Versus Uday Narayan Mitra Interim Resolution of ARSS Infrastructure Projects Ltd.

The NCLAT dismissed a condonation of delay application for a 14-day delayed appeal filing. The appellant failed to provide sufficient reasons for the ... Condonation of delay of 14 days in filing appeal - sufficient reasons for delay or not - whether delay in filing the appeal has occurred due to the reason which was beyond the control of the Appellant? - HELD THAT:- On perusal of the statement made in the condonation of delay application we are satisfied that no such reason has been assigned. Moreover, once the appeal was filed belatedly, it was expected on the part of the appellant to bring on record certified copy of the order. However, in this case an exemption application has been filed. A lenient view is takenin the matter had on the first day when the main appeal was taken up, the appellant had requested for condonation of delay but to the reasons best known to the appellant consecutively on number of dates despite the fact that the appeal was taken up no submission was made that the appeal was filed belatedly. Under Section 61of the I.B. Code, for filing an appeal limitation period is prescribed as 30 days and thereafter in further 15 days if the parties are in position to satisfy the court that there was sufficient plausible reason for non filing of appeal within said period the court can condone the delay but only within extended period of 15 days. However, considering the ground set forth in the application as well as none disclosure by the Appellant to the Court regarding filing of the condonation of delay application on number of dates, it is not inclined to entertain the condonation of delay application - the condonation of delay application stands dismissed. Issues involved:The judgment involves the issue of condonation of delay in filing an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 against an order passed by the National Company Law Tribunal.Condonation of Delay Application:The appellant filed an application seeking condonation of a 14-day delay in filing the appeal against the impugned order. The application cited reasons for the delay, including the unavailability of a certified copy of the order due to the ill health of the local counsel. The appellant engaged a new advocate, and the delay was claimed to be unintentional. The balance of convenience was argued in favor of the appellant, emphasizing the need for timely resolution to prevent irreparable loss.Court Proceedings and Decision:The court considered the grounds presented in the condonation of delay application and noted the absence of day-to-day reasons for the delay. Despite the appellant's efforts to file an exemption application for the certified copy of the order, the court found that the appellant did not adequately explain the delay when the appeal was initially taken up. The court highlighted the statutory limitation period of 30 days for filing an appeal, extendable by a further 15 days with valid reasons. Due to the lack of disclosure by the appellant and the failure to provide sufficient grounds for the delay, the court dismissed both the condonation of delay application and the appeal itself.Conclusion:The National Company Law Appellate Tribunal, New Delhi, dismissed the appeal filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, due to the appellant's failure to adequately justify and disclose the reasons for the delay in filing the appeal, leading to the dismissal of the condonation of delay application as well.