2019 (8) TMI 1555 - Tri - Companies Law

Condonation of delay of filing the main Company Petition - sufficient reason shown for delay or not - HELD THAT - The joint applicant was not able to file the Petition on time prescribed by the Rule as the authorised signatory of Transferee Company had medical emergency and was unavailable to sign the joint petition. On above situation, the Transferee Company had to get the signature of one of the other Director of the Company who was not easily accessible and the same caused a delay of one day, filing the Petition on 03.07.2019, where the due date as per the Rule wa.s on 02.07.2019 The application is allowed by condoning the delay in filing the main CP.

Summary

Issues:
Delay in filing the main Company Petition under Rule 15 of the Companies (Compromise, Arrangement and Amalgamation) Rules, 2016.

Analysis:
The judgment by the National Company Law Tribunal, Bengaluru, involved I.A. No.344 of 2019 in CP (CAA) No.39/BB/2019, where M/s.HHV Center for Advanced Photovoltaic Technologies Pvt. Ltd. and M/s.Hind High Vacuum Company Pvt. Ltd. sought condonation of delay in filing the main Company Petition under Rule 15 of the Companies (Compromise, Arrangement and Amalgamation) Rules, 2016. The Transferor Company, a wholly owned subsidiary of the Transferee Company, proposed a Scheme for amalgamation, which was approved by the respective Board of Directors. The Adjudicating Authority dispensed with shareholder and secured creditor meetings, directing a meeting of Unsecured Creditors of the Transferee Company. The meeting was duly held, and the Chairperson submitted the required reports. However, due to the unavailability of the authorized signatory of the Transferee Company because of a medical emergency, the Petition was filed one day late, causing a delay from the prescribed due date.

The Tribunal, comprising Hon'ble Member (J) Shri Rajeswara Rao Vittanala and Hon'ble Member (T) Dr. Ashok Kumar Mishra, considered the arguments presented by the learned PCS, Shri Thirupal Gorige, for the Applicants. After careful examination of the pleadings and relevant legal provisions, the Tribunal was convinced by the reasons cited for the delay in filing the main CP. Consequently, the Tribunal decided to allow the application by condoning the delay in filing the main CP under Rule 15 of the Companies (Compromise, Arrangement and Amalgamation) Rules, 2016. The Tribunal granted relief to the Applicants by allowing I.A. No.344 of 2019 in CP (CAA) No.39/BB/2019, thereby permitting the case to proceed for final hearing on 26.09.2019.