TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Supreme Court Upholds NCLAT Decision on Statutory Limitations</h1> <h3>National Spot Exchange Limited Versus Mr. Anil Kohli, Resolution Professional for Dunar Foods Limited</h3> National Spot Exchange Limited Versus Mr. Anil Kohli, Resolution Professional for Dunar Foods Limited - TMI Issues Involved:1. Jurisdiction of NCLAT to condone delay beyond 15 days as per Section 61(2) of the Insolvency and Bankruptcy Code (IBC), 2016.2. Application of Article 142 of the Constitution of India to condone delay.3. Privity of contract and the appellant's claim against the corporate debtor.Detailed Analysis:1. Jurisdiction of NCLAT to Condone Delay Beyond 15 Days:The appellant challenged the NCLAT's refusal to condone a delay of 44 days in filing an appeal against the NCLT's order. Section 61(2) of the IBC mandates that an appeal must be filed within 30 days, with a possible extension of 15 days if sufficient cause is shown. The NCLAT dismissed the appeal, stating it lacked jurisdiction to condone delays beyond 15 days. The Supreme Court upheld this decision, citing the clear legislative intent and statutory limitation, which restricts the NCLAT from condoning delays exceeding the prescribed period. The Court referenced similar interpretations in cases like *Popular Construction Co.* and *Hilli Multipurpose Cold Storage Private Limited*, emphasizing that statutory limits must be adhered to strictly.2. Application of Article 142 of the Constitution of India:The appellant sought relief under Article 142 of the Constitution, arguing that the peculiar circumstances and the significant amount involved warranted condonation of the delay. The Supreme Court, however, reiterated that statutory provisions cannot be overridden by invoking Article 142. The Court cited precedents, including *Oil & Natural Gas Corporation Limited v. Gujarat Energy Transmission Corporation Limited*, which held that statutory commands regarding limitation periods must be respected and cannot be circumvented through Article 142. The Court emphasized that allowing such an exception would undermine the legislative intent and statutory framework.3. Privity of Contract and the Appellant's Claim:The appellant argued that funds siphoned off by PD Agro to the corporate debtor should be recoverable from the corporate debtor, despite no direct contractual relationship. The IRP and NCLT rejected this claim, citing the absence of privity of contract and any guarantee or letter from the corporate debtor. The Supreme Court did not delve deeply into this issue, given the primary focus on the jurisdictional and statutory limitation aspects. However, it noted that the appellant's claim was primarily against PD Agro, and the corporate debtor's involvement was indirect, further complicating the appellant's position.Conclusion:The Supreme Court dismissed the appeal, affirming the NCLAT's decision. It highlighted the importance of adhering to statutory limitations and the restricted scope of judicial intervention under Article 142 in such contexts. The judgment underscores the judiciary's role in upholding legislative intent and statutory provisions, even in cases involving significant financial stakes and complex factual backgrounds.
TaxTMI 