2018 (9) TMI 274 - AT - Companies Law

Condonation of delay - period of limitation for person aggrieved by an Order to file appeal - time barred appeal - Held that - A person aggrieved by an Order may file appeal within the period prescribed of 45 days from the date on which copy of the Order of the Tribunal is made available to the person aggrieved. The Appellate Tribunal can entertain appeal after expiry of the said period of 45 days but within further period not exceeding 45 days, if the Tribunal is satisfied that the Appellants were prevented by sufficient cause from filing the appeal within that period. Looking at the present matter, the Impugned Order is dated 14th August, 2017. We intend to ignore the argument of the learned counsel for the Respondents that after 14th August, 2017, the matter in NCLT had been posted on 21st September, 2017 as Order sheet of presence is not shown. Even if we take the date of 10th October, 2017 when Certified Copy was issued, as the basis for calculating the period of limitation, still we find there are obstacles for the Appellants to cross. Certified true copy issued free of cost was issued on 10.10.2017. The Praecipe filed for correction before NCLT is dated 27th December, 2017 as can be seen from Corrigendum Order. The period between 10.10.2017 to 27.12.2017 would be about 77 days. First the Appellants consumed 77 days to move the NCLT for rectification. The NCLT passed orders on 01.01.2018. Even if we ignore that period from 27.12.2017 to 01.01.2018 and give benefit to the Appellants, it does not help Appellants. The Corrigendum Order was passed on 1st January, 2018 (Page - 89 A) and the Appellants were given certified true copy of such Corrigendum Order on 2nd January, 2018. The appeal has been presented only on 31st January, 2018 and thus another about 28 days were consumed. Adding the earlier 77 days consumed and another 28 days consumed, the appeal is filed after 100 days. As such, the appeal is clearly time barred.

Summary

Issues:
1. Calculation of limitation period for filing an appeal against an order of the National Company Law Tribunal.
2. Condonation of delay in filing the appeal.
3. Interpretation of Section 421 of the Companies Act, 2013 regarding the time limit for filing an appeal.
4. Application of relevant case law in determining the condonation of delay.

Analysis:
1. The appeal was filed against an Impugned Order dated 14.08.2017 by the National Company Law Tribunal (NCLT). The Appellants argued that the delay in filing the appeal should be calculated from the Corrigendum Order dated 1st January, 2018, while the Respondents contended that the delay exceeded the permissible limit of 45 days as per Section 421 of the Companies Act, 2013.

2. The Appellants sought condonation of the 97-day delay in filing the appeal, attributing the delay to the incorrect marking of the Interlocutory Application number in the original Order. The Respondents opposed the delay condonation, emphasizing that the Appellants were aware of the Impugned Order but delayed taking action, rendering the appeal time-barred.

3. Section 421 of the Companies Act, 2013 stipulates a 45-day period for filing an appeal from the date the Tribunal's order is made available to the aggrieved party. The Appellate Tribunal can extend this period by an additional 45 days if sufficient cause is shown. Reference was made to a Supreme Court judgment (Civil Appeal No. 684 of 2018) to support the argument that the Tribunal cannot condone a delay beyond the prescribed limit.

4. The Tribunal examined the timeline of events, noting that the certified copy of the Impugned Order was obtained on 10th October, 2017, and the Corrigendum Order rectifying the error was issued on 1st January, 2018. Despite the Appellants' argument that the delay should be calculated from the Corrigendum Order, the Tribunal held that the appeal was time-barred, as it was filed after 100 days from the date of the original Impugned Order. The Tribunal rejected the condonation of delay application and dismissed the appeal as time-barred, in line with the provisions of Section 421 of the Companies Act, 2013 and relevant case law.

Conclusion:
The National Company Law Appellate Tribunal dismissed the appeal as time-barred, refusing to condone the delay of 97 days in filing the appeal against the Impugned Order dated 14.08.2017. The Tribunal's decision was based on a strict interpretation of the statutory provisions governing the time limit for filing appeals and the absence of sufficient cause to warrant an extension beyond the prescribed period.