2019 (8) TMI 1383 - AT - Insolvency and Bankruptcy

Admissibility of application - Section 7 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The present appeal has been preferred after delay of 112 days and in the light of the proviso to sub-section (2) of Section 61, this Appellate Tribunal has no jurisdiction to condone the delay. For the said reason, we are not expressing any opinion with regard to the impugned order dated 10th January, 2019. If the application under Section 12A is not entertained by the Adjudicating Authority that may give a fresh cause of action to the Appellant to move against the said order - appeal is dismissed being barred by limitation.

Summary

Issues:
1. Admission of application under Section 7 of the Insolvency and Bankruptcy Code, 2016.
2. Appeal by the Promoter offering to pay admitted dues to the Financial Creditor.
3. Matter involving HDFC Bank and Home Buyers under Section 12A.
4. Jurisdiction of the Appellate Tribunal to condone delay in appeal filing.
5. Potential cause of action for the Appellant if Section 12A application is not entertained.

Analysis:
1. The judgment pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by an individual against a Corporate Debtor, which was admitted by an impugned order dated 10th January, 2019.

2. The appeal in question was filed by the Promoter, who expressed willingness to pay the admitted dues to the Financial Creditor. However, the appeal was lodged after a delay of 112 days, and the Appellate Tribunal noted that it lacked jurisdiction to condone the delay as per the proviso to sub-section (2) of Section 61.

3. The counsel for the Appellant highlighted that HDFC Bank and other Home Buyers had addressed the issue under Section 12A and subsequently sought withdrawal of the application under Section 7 of the I&B Code before the Adjudicating Authority in Bengaluru. This context was presented as part of the appeal proceedings.

4. Due to the jurisdictional limitation on condoning the delay in filing the appeal, the Appellate Tribunal refrained from expressing any opinion on the impugned order dated 10th January, 2019. The appeal was ultimately dismissed as barred by limitation, with no costs imposed.

5. Notably, the judgment indicated that if the application under Section 12A is not entertained by the Adjudicating Authority, it could potentially provide a fresh cause of action for the Appellant to challenge the earlier order. This aspect was highlighted as a possible avenue for future legal recourse depending on the development of the Section 12A application.