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Tribunal Rejects Appeal Due to Unexplained 12-Day Filing Delay; Extension Beyond 15 Days Not Permitted by Law. The Tribunal dismissed the Application for condonation of a 12-day delay in filing an Appeal under Section 61 of the Code, as the Appellant failed to ...
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Tribunal Rejects Appeal Due to Unexplained 12-Day Filing Delay; Extension Beyond 15 Days Not Permitted by Law.
The Tribunal dismissed the Application for condonation of a 12-day delay in filing an Appeal under Section 61 of the Code, as the Appellant failed to provide a sufficient reason for the delay. The prescribed period for filing is 30 days, extendable by 15 days with sufficient cause, which was not demonstrated. Citing a SC precedent, the Tribunal emphasized that the extension cannot exceed 15 days. Consequently, the Appeal was deemed not duly constituted and was dismissed due to the lack of a valid reason for the delay.
Issues involved: Condonation of delay in filing the Appeal under Section 61 of the Code.
Condonation of Delay Issue: The Appellant filed an Application for condonation of delay of 12 days in filing the Appeal against the Impugned Order. The Appellant sought to be classified as a Financial Creditor at par with the Homebuyers, which was dismissed in the Impugned Order dated 31st March, 2023. The prescribed period for filing the Appeal is 30 days, extendable by 15 days with sufficient cause. The Appellant failed to provide a sufficient reason for the delay, as required by Section 61(2) proviso of the Code. The Application lacked any explanation for the delay and did not inspire confidence in the Appellate Authority for condonation. The Tribunal emphasized that sufficient cause is essential for condonation of delay in insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. Referring to a Supreme Court case, it was noted that the limitation cannot be condoned beyond 15 days. As the Application did not present any sufficient cause, the delay was not condoned, and the Application was dismissed.
Dismissal of the Appeal Issue: The Appeal was filed under Section 61 of the Code, providing a right of appeal to aggrieved parties. Section 61(2) mandates a 30-day period for filing the Appeal, with a 15-day extension if sufficient cause is shown. The Tribunal highlighted that the 15-day extension cannot be further extended, and the delay cannot be condoned beyond this period. Without a valid reason for the delay, the Tribunal lacked grounds to condone the delay and proceeded to dismiss the Application. Subsequently, as the Application was dismissed, the present Appeal was deemed not duly constituted and was also dismissed.
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