2023 (4) TMI 1298 - AT - Companies Law

Condonation of delay of 33 days in filing appeal - sufficient reason for delay or not - HELD THAT - It is evident that no plausible reason has been assigned for delay in filing the appeal. Under provision contained in Section 421 an appeal is to be filed within 45 days, however if further after expiry of 45 days appeal is not filed, then thereafter this tribunal is not competent to entertain the appeal. However, if during extended within 45 days, a party in a position to satisfy the court regarding the reasonable ground for delay, this court may entertain such petition. Considering the statement made in the condonation petition, it is not satisfying that any plausible explanation has been given for delay in filing the appeal. Normally, in condonation of delay application, it is required on the part of the party to explain day to day delay, however, in the present application no such explanation has been given and as such there are no ground to condone the delay. The appeal stands dismissed on the ground of limitation itself.

Summary

Issues involved:
The issues involved in the judgment are the jurisdiction of the National Company Law Tribunal (NCLT) to entertain an application under Section 241-242 of the Companies Act, 2013 without proper shareholding, and the appeal filed against the NCLT order seeking condonation of delay.

Jurisdiction of NCLT:
The Appellant challenged the NCLT's decision to entertain the application under Section 241-242 of the Companies Act, 2013, arguing that the Respondent lacked shareholding in the company, thus not meeting the requirements under Section 244. The Appellant contended that the NCLT committed a jurisdictional error by proceeding with the petition and issuing an order for maintaining status quo.

Condonation of Delay:
The appeal was filed 33 days late, prompting a separate application for condonation of delay. The Appellant sought condonation of the delay, citing difficulties in inferring the exact number of days due to overwriting. However, the Tribunal found no plausible explanation provided for the delay in filing the appeal. The Tribunal noted that under Section 421, an appeal must be filed within 45 days, and without a reasonable ground for delay, the court cannot entertain the appeal. As the condonation petition lacked a satisfactory explanation for the delay, the appeal was dismissed on the grounds of limitation.