2022 (9) TMI 223 - AT - Insolvency and Bankruptcy

Condonation of delay in filing appeal - power to condone delay - contention of the Learned Counsel for the Applicant / Appellant is that this Appellate Tribunal has the requisite power to condone the delay of 1027 days in preferring the instant appeal before this Tribunal - HELD THAT - This Appellate Tribunal takes note of the primordial fact that the ingredients of Section 61 (1) of the Insolvency Bankruptcy Code, 2016 enjoins that every Appeal as per Section 61 (1) of the Insolvency Bankruptcy Code, 2016 shall be filed within 30 days before the National Company Appellate Tribunal and thereafter the Appellate Tribunal may allow an Appeal to be preferred after the expiry of 30 days, only after if it was substantially satisfied, if sufficient cause for not filing the plea in subject period, shall not exceed 45 days. This Tribunal pertinently points out that Section 61 of the Insolvency Bankruptcy Code, 2016 is a Hard Taskmaster. The time limit and the procedural wrangle cannot be allowed to be shaked or shackled with by a Litigant. No doubt, the Appellate Tribunal at the time of dealing with the Condone Delay Application is not required to go into the merits of the case, and in short, merits of the case should not an issue in an Application filed by the concerned Applicant for condoning the delay in preferring such Application. Admittedly, in the instant case, the present Comp App is preferred beyond 45 days (30 15) period, prescribed under the Insolvency Bankruptcy Code, 2016. In reality, there has occasioned a delay of 1027 days in preferring the instant Comp App (AT)(CH)(Ins) No.209/2022, which in the considered opinion of this Tribunal is not to be condoned, as there is no power enjoined upon the Appellate Authority (National Company Law Appellate Tribunal) to condone the delay beyond the prescribed period, enunciated under the Insolvency Bankruptcy Code, 2016. Appeal dismissed.

Summary

Issues involved:
Delay in filing the appeal and the application to condone the delay under the Insolvency & Bankruptcy Code, 2016.

Detailed Analysis:

1. Delay in filing the appeal:
The appeal was filed after a delay of 1027 days against the order passed by the Adjudicating Authority. The Appellant attributed the delay to not receiving the certified copy of the impugned order on time, followed by delays due to pending matters and the Covid-19 pandemic. The Respondents argued that the delay cannot be condoned as the order was passed before the pandemic, and the limitation period extension by the Hon'ble Supreme Court did not apply retroactively.

2. Application to condone the delay:
The Applicant filed IA/460/2022 seeking to condone the delay of 1027 days in filing the appeal. The Applicant contended that the Appellate Tribunal has the power to condone such delays, while the Respondents argued that the delay was excessive and not justifiable under the law.

3. Legal provisions and precedents:
The Respondents cited Section 61(2) of the Insolvency & Bankruptcy Code, 2016, which mandates filing an appeal within 30 days, extendable up to 45 days with sufficient cause. The judgment referred to the importance of timely filing appeals under the Code and the limitations imposed on such filings. The decision of the Hon'ble Supreme Court in V. Nagarajan V SKS Ispat and Power Ltd. was also highlighted, emphasizing the statutory requirements and the need for diligence in pursuing litigation within prescribed timelines.

4. Tribunal's decision:
The Appellate Tribunal noted the strict timelines set by the Insolvency & Bankruptcy Code, 2016, and the lack of authority to condone delays beyond the prescribed period. Considering the delay of 1027 days, the Tribunal held that the application to condone the delay lacked merit and was dismissed. The Tribunal emphasized adherence to the Code's provisions and regulations in a meticulous manner.

5. Conclusion:
The Tribunal dismissed IA/460/2022, leading to the rejection of the instant appeal. The related applications were closed, and no costs were awarded. The judgment underscores the importance of timely appeals under the Insolvency & Bankruptcy Code, 2016, and the limitations on condoning delays beyond the prescribed periods.

This detailed analysis covers the issues of delay in filing the appeal, the application to condone the delay, relevant legal provisions, the Tribunal's decision, and the conclusion of the judgment delivered by the National Company Law Appellate Tribunal, Chennai.