2019 (10) TMI 104 - AT - Insolvency and Bankruptcy

Time limitation - Maintainability of application - claim rejected on the ground that the claim relates to the sister concern PD Agro Processors Pvt. Ltd. - Jurisdiction of Appellate Tribunal to condone the delay - HELD THAT - The appeal has been preferred after long delay and delay for condonation of application has been filed. Resolution Professional has rightly pointed out that beyond 45 days, the delay is 44 days, therefore, this Appellate Tribunal has no jurisdiction to condone the delay. Sub-section 2 of Section 61 provides for powers to this Tribunal of only 15 days which it can condone over the period of appeal of 30 days, if there was sufficient cause. For the said reason, this Appellate Tribunal has no jurisdiction to condone the delay beyond 15 days and thereby the appeal is barred by limitation. Appeal dismissed being barred by limitation.

Summary

Issues:
1. Appeal against order passed by Adjudicating Authority
2. Rejection of claim by Resolution Professional
3. Decree passed in commercial suit against sister concern
4. Condonation of delay in filing appeal

Analysis:
1. The appeal was filed against an order passed by the Adjudicating Authority, affirming the rejection of the Appellant's claim by the Resolution Professional of the Corporate Debtor. The Adjudicating Authority's decision was challenged before the National Company Law Appellate Tribunal.

2. The Appellant's claim was rejected by the Resolution Professional on the grounds that it pertained to a sister concern of the Corporate Debtor. The rejection was based on the decision that the claim related to a different entity, which was upheld by the Adjudicating Authority.

3. The Appellant referred to a decree passed in a commercial suit against the sister concern, stating the amount and interest rate payable. Despite this decree, the Resolution Professional rejected the claim, leading to the appeal before the Appellate Tribunal.

4. The appeal faced a delay in filing, and an application for condonation of the delay was submitted. However, the Resolution Professional argued that the delay exceeded the permissible limit of 45 days, making it beyond the jurisdiction of the Appellate Tribunal to condone. Sub-section 2 of Section 61 limited the Tribunal's power to condone delays to 15 days, rendering the appeal time-barred and dismissed on grounds of limitation.