2025 (9) TMI 1000 - SCH - IBC

One chance to appeal Section 9 IBC proceedings; delay condoned, appeal restored, earlier costs maintained, Rs 5 lakh added

SC held that a litigant must be given one opportunity to prefer an appeal against proceedings under s.9 IBC. The NCLAT order dismissing the appeal for a ... Initiation of proceedings u/s 9 of the Insolvency and Bankruptcy Code, 2016 - dismissal on the ground that there was a delay of 176 days in refiling the appeal - HELD THAT:- It is required to give one opportunity to the appellant to prefer appeal against the Section 9 proceedings. Without saying anything further and maintaining the two orders of costs, one imposed by the NCLT, another by NCLAT and further imposition of costs at end of Rs.5 lakh, the impugned order passed by the NCLAT is set aside and the delay of 176 days in refiling the appeal is condoned and is restored to its original number on the file and proceed further in accordance with law. Appeal disposed off. Appeal by a suspended Director of the Corporate Debtor challenged the NCLAT order dismissing a Company Appeal against proceedings initiated under 'Section 9 of the Insolvency and Bankruptcy Code, 2016' on the ground of a 'delay of 176 days' in refiling. The Court observed it was 'difficult... to find any fault with the view taken by the NCLAT' regarding the appellant's overall conduct, but in the 'peculiar facts and circumstances of the case' granted one opportunity to prefer the appeal. The Court 'set aside the impugned order passed by the NCLAT' and agreed to 'condone the delay of 176 days in refiling the appeal,' restoring the appeal to its original number to 'proceed further in accordance with law.' Prior orders of costs imposed by the NCLT and NCLAT were maintained; further costs of Rs.5,00,000/- each (total Rs.15,00,000/-) were ordered to be deposited-specified recipients include the Prime Minister's National Relief Fund, Karnataka State Legal Services Authority, and the Supreme Court Middle Income Group Legal Aid Society-within one week. Appeal disposed; pending applications disposed.