Condonation of Delay under insolvency law rejected where sufficient cause was not strictly shown on record.

Delay in filing the appeal was not condonable because the appellant had knowledge of the impugned order at least from 16.08.2024, yet the explanation offered did not cover the entire period of delay. The grounds of non-availability of the order copy, later email knowledge, certified copy steps, and court holidays were held insufficient to show diligence or sufficient cause. The impugned order was only a modification of an earlier substantive order approving the resolution plan, which itself had not been challenged. Under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, delay can be condoned only within the statutory limit on strict proof of sufficient cause, and the condonation application was rejected.

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Issues: Whether the delay in filing the appeal beyond the prescribed limitation period could be condoned on the facts disclosed, and whether sufficient cause was shown to extend the delay beyond the statutory outer limit.

Analysis: The appeal was filed well after the order under challenge, and the record showed that the appellant had knowledge of the impugned order at least from 16.08.2024. The explanation furnished for the delay, including alleged non-availability of the order copy, later knowledge from email, certified copy proceedings, and court holidays, did not account for the full period of delay. The order under challenge was only a modification of an earlier substantive order approving the resolution plan, and no challenge had been mounted to the earlier substantive order. Under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, the Appellate Tribunal may condone delay only up to the additional statutory period upon sufficient cause being shown. The material on record did not establish diligence or sufficient cause.

Conclusion: The delay was not condonable, and the application for condonation of delay was rejected.

Ratio Decidendi: In appeals under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, delay beyond the statutory condonable period cannot be excused unless sufficient cause is strictly established on the record.

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