Condonation of delay upheld where guarantor non-cooperation caused a short, non deliberate delay, allowing the report admitted.

Condonation of a 26 day delay in filing the Resolution Professional's repayment-plan report under the insolvency framework is permissible where the delay arose from the personal guarantor's non-cooperation, was not deliberate, and did not cause procedural prejudice; the report may therefore be taken on record to enable merits-based adjudication. The appellate analysis applied the standard assessing inordinate or deliberate delay and prejudice, found none, and affirmed admission of the belated report, resulting in dismissal of the appeals and allowing the dispute to proceed on substantive grounds.

---

---

Issues: Whether the condonation of 26 days' delay in filing the Resolution Professional's report under Section 106 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 9 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, and consequent taking of that report on record, was permissible.

Analysis: The appeals contest the impugned orders that condoned a 26-day delay in submission of the report regarding the repayment plan and took the report on record. The adjudicatory reasoning relied on factual findings that the delay resulted from the personal guarantors' failure to furnish the repayment plan and related information within the dates extended by the Resolution Professional despite repeated follow-ups. There is no statutory bar to accepting a belated report where delay is not deliberate or prejudicial; Section 106 and the relevant Regulation require submission of the repayment plan and a report but do not mandate automatic rejection of belated filings. The Appellate Tribunal examined whether the delay was inordinate, deliberate, or caused procedural prejudice; finding none, it held that condonation facilitated adjudication on merits and did not adversely affect parties' rights.

Conclusion: The condonation of the 26 days' delay and the taking of the Resolution Professional's report on record are upheld; the appeals are dismissed. (In favour of Respondent)

Ratio Decidendi: Where a delay in filing a report required under Section 106 of the Insolvency and Bankruptcy Code, 2016 is attributable to the non-cooperation of the personal guarantor, is neither deliberate nor prejudicial, and does not impede adjudication on merits, the adjudicating authority may condone the delay and admit the report to facilitate effective disposal of the controversy.

---