2023 (5) TMI 897 - AT - Insolvency and Bankruptcy

Condonation of delay in filing appeal - sufficient reasons for delay provided or not - Maintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues (or not) - Operational Creditors - application filed u/s 9 of IBC dismissed on the ground that the Corporate Debtor has already paid the Principal Amount and the Petition under Section 9 is not maintainable in respect of interest. Whether there is a sufficient cause assigned by the Applicant/Appellant for the purpose of Condonation of Delay or not? - HELD THAT - Admittedly, the Impugned Order was received by the Appellant within two/three days of its passing. The Appellant was having about 25 days if not more for the purpose of engaging the Counsel and filing of Appeal but he has made a lame excuse that he belongs to Orrisa and the Counsel was to be engaged at Chennai, therefore, the prescribed period of 30 days had expired and even the Appeal has been filed on the last day of 15th day, therefore, the Appellant is asking for Condonation of 15 days which is the extended period provided in Section 61(2) proviso. The cause shown by the Applicant/Appellant is not satisfying, as it does not fall within the ambit of sufficient cause, therefore, there are no merit in this Application and the same is hereby dismissed.

Summary

Issues:

1. Dismissal of Application under Section 9 of the Insolvency and Bankruptcy Code, 2016.
2. Condonation of Delay in filing the Appeal.

Issue 1: Dismissal of Application under Section 9 of the Insolvency and Bankruptcy Code, 2016

The Appellant, an 'Operational Creditor,' filed an Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the 'Corporate Debtor.' The National Company Law Tribunal, Bengaluru Bench, dismissed the Application on the grounds that the Corporate Debtor had already paid the Principal Amount, making the Petition under Section 9 not maintainable for interest recovery. The Appellant was advised to pursue other legal remedies for interest recovery.

Issue 2: Condonation of Delay in filing the Appeal

The Appeal against the Tribunal's Order was accompanied by a request for Condonation of Delay of 15 days in filing, invoking Rule 11 of the National Company Law Appellate Tribunal Rules, 2016. The Appellate Tribunal can only condone a delay of 15 days as per Section 61(2) of the Code. The Appellant claimed that the delay was due to receiving the Impugned Order a few days after its passing, seeking legal advice, and arranging for a local Counsel in Chennai.

Upon review, the Tribunal found the cause shown by the Appellant for the delay in filing the Appeal was not sufficient. The Appellant had ample time to engage Counsel and file the Appeal within the prescribed period of 30 days but waited until the last day of the extended 15-day period. Consequently, the Application for Condonation of Delay was dismissed, leading to the dismissal of the Appeal itself as not duly constituted. No costs were awarded in this matter.