Appeal deemed within time limit under Section 14 of Limitation Act

The Tribunal allowed the condonation of delay application, granting the Appellant the benefit of Section 14 of the Limitation Act. The appeal was treated as filed within the limitation period, and the application I.A. No. 2315 of 2023 was disposed of accordingly.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Applicability of Section 14 of the Limitation Act in the context of filing an appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC).

Summary:

Issue 1: Condonation of Delay in Filing the Appeal
The Appellant sought condonation of delay for the period from 26.12.2022 to 01.05.2023, during which they were prosecuting a writ petition before the Punjab and Haryana High Court. The appeal was filed after the High Court disposed of the writ petition, granting liberty to the Appellant to file an appeal before the Appellate Tribunal within two weeks.

Issue 2: Applicability of Section 14 of the Limitation Act
The core question was whether the Appellant is entitled to the benefit of Section 14 of the Limitation Act for the purpose of computing the limitation period for filing the appeal under Section 61 of the IBC. The Tribunal noted that while Section 14 is not strictly applicable, its underlying principles are relevant.

The Tribunal cited the Supreme Court's judgment in Kalpraj Dharamshi & Anr. vs Kotak Investment Advisors Ltd. & Anr., which held that the principles underlying Section 14 of the Limitation Act are applicable to appeals under Section 61 of the IBC. The Tribunal emphasized that the Appellant prosecuted the writ petition in good faith and with due diligence, and the writ petition was not dismissed due to a defect of jurisdiction but on the ground of an alternative remedy being available.

Detailed Findings:
- The Appellant filed the writ petition due to the non-functioning of the Appellate Tribunal during the winter vacation, which was considered a bona fide action.
- The High Court, upon disposing of the writ petition, granted liberty to the Appellant to file an appeal within two weeks, indicating that the writ proceedings were prosecuted in good faith.
- The Tribunal rejected the Respondent's objections regarding the power of attorney and the good faith prosecution of the writ petition, considering the power of attorney valid for the purpose of prosecuting the appeal.

Conclusion:
The Tribunal allowed the condonation of delay application, granting the Appellant the benefit of Section 14 of the Limitation Act. The appeal was treated as filed within the limitation period, and the application I.A. No. 2315 of 2023 was disposed of accordingly.

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