2023 (3) TMI 591 - AT - Insolvency and Bankruptcy

Appeal challenging claim rejection dismissed due to delay; emphasizes importance of timely compliance in insolvency appeals.

The Tribunal dismissed the appeal challenging the rejection of a claim in a Company Petition, citing a delay of 289 days in filing the appeal. Despite the ... Seeking approval of Resolution Plan - claim filed by the Appellant cannot be considered at this stage and the same was not entertained - stand of the Petitioner/Appellant is that due to the second waive of COVID 2019, the Petitioner/Appellant could filed an application against the rejection of the claim and on 11.05.2021, the Petitioner/Appellant had inadvertently filed the above before the Adjudicating Authority/Tribunal, against the rejection of the claim by the Resolution Professional. HELD THAT:- The ingredients of Section 61(1) and (2) of the Insolvency and Bankruptcy Code, in person being aggrieved in respect of order passed by the Adjudicating Authority is to prefer an Appeal before this Appellate Tribunal within 30 days and this means from the date of pronouncement of the concerned orders. However, in the instant Case, admittedly according to the Petitioner/Appellant, the Petitioner seeks to condone delay of 289 days from 10.03.2022 till 23.12.2022 in preferring the instant Company Appeal and also seeks for an exclusion of 302 days between 11.05.2021 [Period between filing of application IA/262/2021] till 09.03.2022 (date of disposal of the Application by the Adjudicating Authority]. Rule 150(3) of the NCLT Rules, enjoins that a certified copy of every order passed by the Tribunal shall be given to the parties etc. In view of the clear-cut position of Section 61(1) of the Insolvency and Bankruptcy Code coupled with 150 of the NLCT Rules, this Tribunal is of the considered opinion that the delay of 289 days as afforded by the Petitioner/Appellant from 10.03.2022 to 23.12.2022 in filing the instant Company Appeal cannot be condoned as there is no power to enjoin upon this Appellate Tribunal to condone not even a single day beyond the condonable period prescribed as per Section 61 of the Insolvency and Bankruptcy Code, 2016. Application dismissed. Issues involved: The appeal challenges an order passed by the Adjudicating Authority in a Company Petition, regarding the approval of a Resolution Plan and the rejection of a claim by the Appellant. The main issue is the delay in filing the appeal and seeking condonation of the same.Details of the Judgment:Regarding the filing of the appeal:The Appellant contended that due to the impact of COVID-19, there was a delay in filing the application against the rejection of the claim. The Appellant argued that the appeal was filed within the limitation period as per the provisions of the Insolvency and Bankruptcy Code, 2016. The Appellant sought exclusion of the period between the filing of the application and its disposal, invoking Section 14 of the Limitation Act.Interpretation of the relevant laws:The Appellant referred to Section 6(1) and (2) of the Insolvency and Bankruptcy Code, which allows for filing an appeal within thirty days before the National Company Law Appellate Tribunal. The Appellant sought condonation of the delay in filing the appeal, citing sufficient cause for the delay.Decision of the Tribunal:The Tribunal noted the Appellant's request to condone a delay of 289 days in filing the appeal. However, considering the provisions of the Insolvency and Bankruptcy Code and the NCLT Rules, the Tribunal held that the delay could not be condoned beyond the prescribed period. The Tribunal concluded that the appeal lacked merit and dismissed it, along with related pending applications, without imposing any costs.Conclusion:The Tribunal dismissed the appeal and related applications, emphasizing that the delay in filing the appeal could not be condoned beyond the statutory period. The judgment highlights the importance of adhering to the prescribed timelines in filing appeals under the relevant laws governing insolvency and bankruptcy proceedings.