2023 (9) TMI 1431 - AT - Insolvency and Bankruptcy

Condonation of delay of 12 days in filing appeal - sufficient cause for delay or not - HELD THAT - The Appellant has to give sufficient cause in the Application which should inspire confidence in the Appellate Authority to condone the delay for not reaching the Appellate Authority within the prescribed period. In this regard, it would be relevant to refer to the averments made in the Application in which the Appellant has not stated as to how and why the delay has occurred in not filing the Appeal within the prescribed period of 30 days from the date of pronouncement of the Order dated 31st March, 2023 - As a matter of fact, the reason much less sufficient, for the purpose of condonation of delay is conspicuous by its absence, in the entire application. Therefore, there is nothing for this Tribunal to appreciate about the sufficient cause for not approaching the Appellate Authority within the time prescribed or even thereafter within the window of 15 days. The period of 15 days cannot be extended and the Appellate Tribunal does not have jurisdiction to consider and condone the delay beyond the period of 15 days and in case the Appellate Authority is satisfied that there has been a sufficient cause for not filing the Appeal within the time prescribed or within the extended period, it can condone the delay and hear the matter on merits. Therefore, sufficient cause is the heart and soul of the application for condonation of delay which is totally missing in this Application. The law is very strict so far as the proceedings under the Insolvency and Bankruptcy Code, 2016 is concerned as has been held by Hon'ble Supreme Court in the case of NATIONAL SPOT EXCHANGE LIMITED VERSUS MR. ANIL KOHLI, RESOLUTION PROFESSIONAL FOR DUNAR FOODS LIMITED 2021 (9) TMI 1156 - SUPREME COURT in which it has been held that after the expiry of 15 days, the limitation cannot even be condoned under Article 142 of the Constitution of India. Having said that, in the absence of any averment made in the application for condonation of delay in regard to sufficient cause, we do not find any reason to condone the delay and the Application is thus hereby dismissed. Application dismissed.

Summary

Issues involved:
Condonation of delay in filing the Appeal under Section 61 of the Code.

Condonation of Delay Issue:
The Appellant filed an Application for condonation of delay of 12 days in filing the Appeal against the Impugned Order. The Appellant sought to be classified as a Financial Creditor at par with the Homebuyers, which was dismissed in the Impugned Order dated 31st March, 2023. The prescribed period for filing the Appeal is 30 days, extendable by 15 days with sufficient cause. The Appellant failed to provide a sufficient reason for the delay, as required by Section 61(2) proviso of the Code. The Application lacked any explanation for the delay and did not inspire confidence in the Appellate Authority for condonation. The Tribunal emphasized that sufficient cause is essential for condonation of delay in insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. Referring to a Supreme Court case, it was noted that the limitation cannot be condoned beyond 15 days. As the Application did not present any sufficient cause, the delay was not condoned, and the Application was dismissed.

Dismissal of the Appeal Issue:
The Appeal was filed under Section 61 of the Code, providing a right of appeal to aggrieved parties. Section 61(2) mandates a 30-day period for filing the Appeal, with a 15-day extension if sufficient cause is shown. The Tribunal highlighted that the 15-day extension cannot be further extended, and the delay cannot be condoned beyond this period. Without a valid reason for the delay, the Tribunal lacked grounds to condone the delay and proceeded to dismiss the Application. Subsequently, as the Application was dismissed, the present Appeal was deemed not duly constituted and was also dismissed.