2022 (10) TMI 810 - AT - Insolvency and Bankruptcy

Appeal Dismissed for Late Filing, Emphasizes Importance of Timely Compliance

The National Company Law Appellate Tribunal dismissed an appeal filed by an Operational Creditor challenging an order due to a delay in filing the appeal ... Condonation of delay in filing appeal - Appeal not filed within stipulated period of 30 days - Section 61 (2) of the Insolvency & Bankruptcy Code, 2016 - HELD THAT:- Section 421 (3) of the Companies Act, 2013 provides that Every Appeal under Sub-Section (1) shall be filed within a period of forty-five days from the date on which a copy of the Order of the Tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed. However, a mere running of the eye of the ingredients of Section 61 (2) of the Insolvency & Bankruptcy Code, 2016, unerringly exhibits that the said Section is conspicuously silent about the words, a copy of the order is made available to the person aggrieved, etc. Considering the fact that the instant appeal was filed by the Appellant before this Tribunal on 09.09.2022 and this Tribunal bearing in mind that the outer limit of 45 Days (30 + 15) came to an end on 05.09.2022 and admittedly, as such, the instant appeal is clearly barred by time. Appeal dismissed being not maintainable. Issues:1. Timeliness of filing the appeal before the Appellate Tribunal.2. Requirement of a certified copy of the impugned order for filing an appeal.3. Interpretation of relevant legal provisions under the Insolvency & Bankruptcy Code, 2016 and Companies Act, 2013.4. Precedent set by the Hon'ble Supreme Court and previous judgments of the Appellate Tribunal.Issue 1: Timeliness of filing the appeal before the Appellate TribunalThe Appellant, an Operational Creditor, filed an appeal before the National Company Law Appellate Tribunal challenging an order passed by the Adjudicating Authority. The Appellant contended that the Certified Copy of the Impugned Order was not dispatched promptly, leading to a delay in filing the appeal. The Appellant filed the appeal on 09.09.2022, whereas the 45-day time limit for filing the appeal had expired on 05.09.2022. The Tribunal noted that the appeal was clearly time-barred based on the outer limit provided for filing appeals in such cases.Issue 2: Requirement of a certified copy of the impugned order for filing an appealThe Appellant argued that the Limitation Period for filing the appeal should commence from the date they collected the Certified Copy of the Impugned Order on 01.08.2022. However, the Tribunal emphasized that the requirement for filing an appeal within the stipulated time frame is crucial, and the Appellant failed to meet this requirement due to the delay in filing the appeal beyond the prescribed period.Issue 3: Interpretation of relevant legal provisions under the Insolvency & Bankruptcy Code, 2016 and Companies Act, 2013The Tribunal examined Rule 150 of the NCLT Rules, 2016, which mandates the Pronouncement of Orders and furnishing Certified Copies to the Parties. Additionally, Section 421(3) of the Companies Act, 2013 specifies the time limit for filing appeals upon the availability of a Certified Copy of the Order. The Tribunal highlighted the distinction between the provisions of the Insolvency & Bankruptcy Code and the Companies Act, emphasizing the need for due diligence on the part of the aggrieved party in obtaining the necessary documents for filing an appeal.Issue 4: Precedent set by the Hon'ble Supreme Court and previous judgments of the Appellate TribunalThe Tribunal referenced a significant judgment by the Hon'ble Supreme Court, which highlighted the importance of adhering to the prescribed time limits for filing appeals under the IBC. The Tribunal also cited a previous judgment by the Appellate Tribunal, which dismissed an appeal due to a delay beyond the permissible limit. Based on these precedents and legal interpretations, the Tribunal concluded that the instant appeal was not maintainable and dismissed it accordingly.This detailed analysis of the judgment before the National Company Law Appellate Tribunal in Chennai underscores the critical aspects of timeliness, legal requirements for filing appeals, and the significance of adhering to prescribed procedures and time limits in such matters.