2022 (7) TMI 1354 - AT - Insolvency and Bankruptcy

Condonation of delay of 29 days in filing appeal - deliberate delay on their part in filing the appeal or not - HELD THAT - Section 61 of the Code provides appeals to the Appellate Authority much less the NCLAT against the order of the Adjudicating Authority. Section 61(2) provides limitation of 30 days to file the appeal. The proviso to section 61(2) further provides that the period of limitation can be extended by the Appellate Authority for another 15 days if it is satisfied that the Appellant had a sufficient cause for not filing the appeal within the prescribed period. There is no other provision in the Code by which the limitation can be extended. It is an admitted fact that the appeal has been filed much beyond the period of 30 plus 15 days. It is needless to mention that the period of 30 days is statutorily provided to a party who intends to file an appeal but the period of 15 days is left at the discretion of the Appellate Authority which has to look into the adequacy of sufficient cause before extending the period of another 15 days. In no case the limitation can be extended beyond the period of 45 days. In view of the aforesaid facts and circumstances, especially in view of the fact that despite having the knowledge on 02.01.2020 the certified copy was applied on 31.01.2020 the Appellant has shown that they were actually not interested in filing the appeal in time. No other argument has been raised. Appeal dismissed.

Summary

Issues:
- Challenge to order initiating liquidation proceedings
- Condonation of delay in filing appeal
- Interpretation of limitation period for filing appeal

Challenge to Order Initiating Liquidation Proceedings:
The appeal was filed by the ex-promoters of a company to challenge the order initiating liquidation proceedings passed by the Adjudicating Authority. The Appellant sought condonation of delay in filing the appeal, stating that they were not party to the original proceedings and learned about the order later. The Respondent argued that the limitation for filing the appeal should be counted from the date of passing of the order, not from the date of knowledge of the party. The Appellate Tribunal noted that the Appellant had knowledge of the order before the date they claimed and did not show genuine interest in filing the appeal promptly. Consequently, the Tribunal dismissed the appeal.

Condonation of Delay in Filing Appeal:
The Appellant filed an application for condonation of delay in filing the appeal, citing reasons for the delay. The Respondent contested the reasons provided by the Appellant, arguing that the limitation period should be calculated from the date of passing of the order, not from the date of knowledge of the party. The Tribunal highlighted that the limitation period for filing an appeal is 30 days, extendable by another 15 days at the discretion of the Appellate Authority upon showing sufficient cause. In this case, the appeal was filed well beyond the extended period, and the Appellant's actions indicated a lack of genuine interest in timely filing. Consequently, the Tribunal dismissed the application for condonation of delay and the appeal itself.

Interpretation of Limitation Period for Filing Appeal:
The Tribunal examined the issue of whether the limitation period for filing an appeal should be calculated from the date of passing of the order or from the date of knowledge of the party. Citing relevant Supreme Court judgments, the Tribunal clarified that the limitation period starts from the date of passing of the order, not from the date the party becomes aware of it. The Appellant's claim of not being aware of the order until a later date was refuted by the Respondent, who pointed out the Appellant's active participation in the proceedings. The Tribunal found that the Appellant's delay in applying for the certified copy of the order further indicated a lack of genuine intent to file the appeal promptly. As a result, the Tribunal dismissed the appeal and the application for condonation of delay.