2022 (10) TMI 557 - AT - Insolvency and Bankruptcy

Time limitation - application filed for condonation of 1-day delay in filing the Appeal and 53 days delay in filing the physical copy of the Appeal - It is submitted that in view of the order of the Hon ble Supreme Court dated 10.01.2022 2022 (1) TMI 385 - SC ORDER , the Appellants are entitled to compute limitation as per directions in para 5(IV) and para 5(III) is not applicable to them - HELD THAT - By direction issued in para 5(III), the Hon ble Supreme Court has directed that period of limitation expired between 15.03.2020 till 28.02.2022, all persons shall have limitation period of 90 days w.e.f. 01.03.2022. Direction in para (IV) is a clarificatory which states that period from 15.03.2020 till 28.02.2022 shall also stand excluded in computing the periods prescribed under Sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits within which the court or Tribunal can condone delay. The direction in Para 5(IV) is only clarificatory and in no manner restrict the benefit which has been extended in Para 5(III). The Appellants are clearly entitled to the benefit of limitation as provided in Direction 5(III) under which w.e.f. 01.03.2022, they are entitled to file Appeal within 90 days. 90 days period came to an end on 29.05.2022. There are no substance in the submission of the Counsel for the Respondents that the Appellants are not entitled for the benefit as provided in Para 5(III) - application disposed off.

Summary

Issues Involved:
1. Condonation of delay in filing appeals.
2. Computation of limitation period for e-filing and physical filing of appeals.
3. Applicability of Supreme Court's order on limitation extension due to COVID-19.

Detailed Analysis:

1. Condonation of Delay in Filing Appeals:
The primary issue addressed is the condonation of delay in filing two appeals. Company Appeal (AT) (Ins.) No. 984 of 2022 was filed against an order dated 18.01.2022, with a delay of one day in e-filing and 53 days in physical filing. Company Appeal (AT) (Ins.) No. 1031 of 2022 was filed against an order dated 28.02.2022, with a timely e-filing but delayed physical filing.

2. Computation of Limitation Period for E-filing and Physical Filing of Appeals:
The Appellant argued that the limitation period should be computed from the date of e-filing, citing the "Rules for On-Line Electronic Filing" by the Delhi High Court and a Supreme Court order extending the limitation period due to COVID-19. The Respondent countered that, according to the National Company Law Appellate Tribunal Rules, 2016, the appeal must be presented physically at the filing counter, and the limitation should be computed from the date of physical filing.

Relevant Provisions and Circulars:
- Rule 22 of the NCLAT Rules, 2016 mandates the physical presentation of appeals.
- Rule 103 allows for electronic filing but does not specify the computation of limitation.
- The NCLAT Circular dated 03.01.2021 permits e-filing but requires physical copies.
- High Court of Delhi's Rules (22.02.2022) and Orissa High Court Guidelines provide specific provisions for computing limitation from the date of e-filing under certain conditions.

Tribunal's Interpretation:
The Tribunal noted that the NCLAT Circulars did not clarify the computation of limitation for e-filing. Given this ambiguity, the Tribunal decided in favor of the Appellants, allowing the computation of limitation from the date of e-filing. Thus, Company Appeal (AT) (Ins.) No. 1031 of 2022 was within the allowed time, and the one-day delay in Company Appeal (AT) (Ins.) No. 984 of 2022 was condoned.

3. Applicability of Supreme Court's Order on Limitation Extension Due to COVID-19:
The Respondent argued that the Appellants were not entitled to the Supreme Court's extension benefits as per the order dated 10.01.2022. The Tribunal referred to the Supreme Court's directions, particularly para 5(III) and 5(IV), which extended the limitation period due to COVID-19 impacts. The Tribunal clarified that para 5(IV) was merely clarificatory and did not restrict the benefits of para 5(III), which allowed a 90-day extension from 01.03.2022. Consequently, the appeals were filed within the extended period.

Conclusion:
The Tribunal concluded that Company Appeal (AT) (Ins.) No. 1031 of 2022 was filed within the permissible time, and the one-day delay in Company Appeal (AT) (Ins.) No. 984 of 2022 was condoned. The Tribunal also recommended that the Registry place the order before the Hon'ble Chairperson to consider issuing clarifications regarding the computation of limitation for e-filing to avoid future ambiguities.