Condonation of delay under insolvency law denied where a 466-day delay lacked credible support

An appeal against a liquidator's decision under the Insolvency and Bankruptcy Code is subject to a 14-day limitation period under Section 42. A delay of 466 days was attributed to financial inability to approach the Tribunal, but that explanation was found unsatisfactory and unsupported by acceptable material. Applying the governing principles on condonation of delay, the Tribunal declined to extend the limitation period, and the appeal remained barred by limitation.

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Issues: Whether the appeal under Section 42 of the Insolvency and Bankruptcy Code, 2016 was liable to be entertained despite a delay of 466 days, and whether the explanation offered for condonation of delay constituted sufficient cause.

Analysis: Section 42 prescribes a short limitation period of 14 days for an appeal against the liquidator's decision. The explanation for the long delay was financial inability to approach the Tribunal. The delay was found to be inordinate, and the reason assigned was held to be unsatisfactory and unsupported by acceptable material. On that basis, the Tribunal applied the governing principles on condonation of delay and declined to extend the limitation period.

Conclusion: The delay was not condoned and the appeal was held to be barred by limitation.

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