2023 (7) TMI 1363 - AT - Insolvency and Bankruptcy

Appeal Dismissed: Court Denies Delay Condonation, Upholds Strict Timelines Under Insolvency and Bankruptcy Code.

Micron Electricals Versus Aishwarya Heights Infra Pvt. Ltd.

The appeal against the Adjudicating Authority's order under the Insolvency and Bankruptcy Code, 2016, was dismissed by the appellate authority. The ... Maintainability of application filed u/s 9 of the IBC, 2016 - Condonation of delay in filing appeal - sufficient cause for delay or not - HELD THAT:- Any person, who is aggrieved by an order of the Adjudicating Authority, has a right to appeal but for that purpose a period of 30 days has been prescribed. In case, the Appellant fails to file the appeal within the period of 30 days due to some reasons which is justifiable or constitute a sufficient cause, the appeal still can be filed within a period of 15 days but it cannot be extended any further beyond the period of 15 days in view of the Judgment of the Hon'ble Supreme Court in the case of National Spot Exchange Limited [2021 (9) TMI 1156 - SUPREME COURT]. The Appellant has given a lame excuse for not filing the appeal in time (30 days) on the ground that the person who had to file the appeal is 74 years of age but it is nowhere mentioned in the application much less the affidavit attached that he was infirm and incapable of engaging the counsel for the purpose of filing the appeal. It appears that there has been a totally causal approach of the Appellant in coming to this Court in appeal beyond the period of 30 days and without any sufficient cause. There is hardly any merit in this application which requires consideration and interference, consequently, the application is found devoid of any merit and the same is hereby dismissed. Issues involved:The appeal against the order of the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 was dismissed, and an application for condonation of delay in filing the appeal was made.Issue 1: Dismissal of the appealThe appeal was filed against the order of the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016, which was dismissed. The appellant filed an application for condonation of delay in filing the appeal, citing reasons for the delay.Details:The appeal was directed against the order dated 28.02.2023, passed by the Adjudicating Authority, where a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, was dismissed. The appellant filed an application for condonation of delay of 14 days in filing the appeal. The appellant's counsel addressed the delay issue, stating that the appeal was filed after the expiry of the extended period due to difficulties faced by the managing partner of the Applicant firm, who is also the authorized representative and signatory.Issue 2: Legal provisions on appeals and condonation of delayThe legal provisions under Section 61 of the Insolvency and Bankruptcy Code, 2016, deal with appeals and the appellate authority. The section provides a statutory right to appeal to any person aggrieved by an order of the Adjudicating Authority, with specific timelines for filing the appeal and conditions for condonation of delay.Details:Section 61 of the Code allows any person aggrieved by the Adjudicating Authority's order to prefer an appeal to the National Company Law Appellate Tribunal. The section prescribes a period of 30 days for filing the appeal, with a provision for a 15-day extension in case of sufficient cause. The judgment of the Hon'ble Supreme Court emphasizes that delays beyond 15 days are uncondonable, as per statutory provisions.Conclusion:The appeal against the Adjudicating Authority's order was dismissed due to the failure to file within the prescribed timelines and lack of sufficient cause for the delay. The application for condonation of delay was found devoid of merit and dismissed. The legal provisions and judicial precedents were cited to support the decision on the condonation of delay issue.