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2024 (12) TMI 746 - AT - IBCCondonation of 16 days of delay in filing Appeal - Appellant herein is not a party to the proceedings - condonable period u/s 61(1) of I B Code, 2016 - HELD THAT - It is seen that admittedly here, the knowledge of the Impugned Order was attributed on 19.08.2024 to the Appellant herein, who is not a party to the proceedings, that if the time taken to file the Appeal is contemplated to be determined from the date of knowledge, the Appeal filed by the Appellant, will be well within the proviso to Sub Section 2 of Section 61 of I B Code, 2016, and that, since, he was not a party to the proceedings and has sought for a complete exemption from filing the Certified copy of the Impugned Judgment by filing an Exemption Application i.e. IA No. 1010 / 2024, the delay in filing the Appeal can be denied to be condoned merely because, he has not applied for the Certified copy within 30 days from the date of the Judgment and even the date of knowledge i.e. 19.08.2024 which was an issue dealt in the matters of V. Nagarajan V. SKS Ispat Power Limited 2021 (10) TMI 941 - SUPREME COURT (LB) . Since the law provides the latitude for a complete exemption from supplying the Certified copy, failure to apply for the Certified copy within the prescribed period of limitation from the date of knowledge i.e. 19.08.2024, since applied only on 08.10.2024, may be fatal enough to deny condonation of delay and that too, in the circumstances of the instant case, where the Appeal has been preferred on 14.09.2024 i.e., it was beyond the upper 45 days of time period prescribed under the proviso to Sub Section 2 of Section 61 of the I B Code, 2016, if computed from the date of pronouncement of the Judgment. The Appellant will not be falling within the proviso to Sub Section 2 of Section 61 of the I B Code, 2016. Thus, the instant Appeal deserves rejection on the ground of limitation. Appeal dismissed.
Issues:
Challenge to Impugned Order dated 29.07.2024 by Secured Financial Creditor. Condonation of delay in filing the Appeal. Analysis: 1. The Appellant, a Secured Financial Creditor, filed an Appeal challenging the Impugned Order directing him to tender an amount to the Liquidation Account and reimburse costs for asset preservation. The Corporate Debtor was admitted into CIRP proceedings, leading to liquidation. The Liquidator sought to distribute surplus from unsold assets among stakeholders, prompting the Impugned Order. 2. The Appellant filed a Condone Delay Application due to a 16-day delay in filing the Appeal. He argued that the delay was reasonable as he only learned of the Impugned Order on 19.08.2024 and promptly filed the Appeal on 14.09.2024, within the prescribed period under the I & B Code, 2016. 3. The Appellant contended that his lack of involvement in the proceedings until he learned of the Order justifies condonation, especially as he sought exemption from filing a Certified copy of the Order. He cited the latitude provided under Section 61 and Rule 31 of NCLAT Rules, 2016. 4. The Respondent argued that knowledge alone should not justify condonation if the Certified copy is not filed within the limitation period. Citing a previous judgment, the Respondent emphasized the importance of timely filing, regardless of knowledge. 5. The Tribunal analyzed the timelines and actions of the parties. It noted the Appellant's delayed application for the Certified copy and deemed the Appeal filed beyond the prescribed 45-day limit from the date of the Judgment, leading to rejection based on limitation grounds. 6. Considering precedents and the specifics of the case, the Tribunal rejected the Condone Delay Application, citing the delay in filing the Appeal beyond the permissible limit. The Appeal was dismissed, and related Interlocutory Applications were closed, emphasizing the importance of compliance with limitation periods in legal proceedings.
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