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2022 (11) TMI 1155 - AT - Insolvency and BankruptcySeeking to exclude the period from 25.01.2022 till 22.06.2022 (147 Days) in computing the Period of Limitation - seeking direction from the Adjudicating Authority, (National Company Law Tribunal, Kochi Bench, Kerala), to add the personal properties of the Petitioners / Appellants, into the Liquidation Estate of the Corporate Debtor - sufficient cause for delay or not. HELD THAT - This Tribunal, pertinently points out that the Legislature, has enacted Section 14 of the Limitation Act, 1963, to exempt a particular / certain period, covered by a Bonafide Litigious Activity. Inherently, there is an element of Mistake, in the invocation of Section 14 of the Limitation Act, 1963. As a matter of fact, in extending the benefit of the ingredients of Section 14 of the Limitation Act, 1963, to a Party / Litigant, the Tribunal, is to see whether the conduct will satisfy the test of prosecuting a Given Proceeding in a Good faith and Due diligence. In short, if a Good faith is established, Section 14 of the Limitation Act, 1963, can be pressed into service, in the considered opinion of this Tribunal. It is significantly pointed out by this Tribunal that the period of Limitation for filing a Suit / Appeal, is fixed by Law / Statute / Code and ordinarily, it cannot be deemed to be excluded or extended, automatically or as a matter of routine. The Petitioners / Appellants have indulged in Bonafide Litigious Activity, in preferring the petition, before the Hon ble High Court of Kerala, this Tribunal, by construing the ingredients of Section 14 of the Limitation Act 1963, in a liberal manner and by applying Equity, permits the exclusion of period from ₹ 25.01.2022 till 22.06.2022 (147 days), in computing the Period of Limitation - application disposed off.
Issues Involved:
1. Exclusion of the period from 25.01.2022 till 22.06.2022 in computing the 'Period of Limitation'. 2. Jurisdiction of the Adjudicating Authority. 3. Application of Section 14 of the Limitation Act, 1963. 4. Compliance with the prescribed time limit for filing an appeal. Issue-Wise Detailed Analysis: 1. Exclusion of the Period from 25.01.2022 till 22.06.2022 in Computing the 'Period of Limitation': The Petitioners sought to exclude 147 days spent in prosecuting a writ petition and writ appeal before the Hon'ble High Court of Kerala. They argued that this period should be excluded under Section 14 of the Limitation Act, 1963, which allows exclusion of time spent in bona fide litigation in a wrong forum. The Tribunal noted that the Petitioners had indulged in "Bonafide Litigious Activity" and permitted the exclusion of the period from 25.01.2022 till 22.06.2022. However, the appeal was still filed one day late, beyond the prescribed time limit granted by the Hon'ble High Court of Kerala. 2. Jurisdiction of the Adjudicating Authority: The Petitioners contended that the order passed by the Adjudicating Authority (National Company Law Tribunal, Kochi Bench, Kerala) was without jurisdiction. They initially filed a writ petition before the Hon'ble High Court of Kerala, which was dismissed. They then filed a writ appeal, which was also dismissed. The Tribunal noted that the Petitioners should have filed the appeal within 30 days from the date of the impugned order, as per Section 61 of the Insolvency & Bankruptcy Code, 2016. 3. Application of Section 14 of the Limitation Act, 1963: The Petitioners relied on the decision of the Hon'ble Supreme Court in Kalparaj Dharamshi and another v. Kotak Investment Advisors Limited and another, which held that the provisions of Section 14 of the Limitation Act, 1963, apply to proceedings before the Tribunal. The Tribunal accepted this argument and allowed the exclusion of the period spent in bona fide litigation before the Hon'ble High Court of Kerala. However, the appeal was still filed one day late. 4. Compliance with the Prescribed Time Limit for Filing an Appeal: The Hon'ble High Court of Kerala had permitted the Petitioners to file an appeal within two weeks from the date of its judgment (22.06.2022). The Tribunal noted that the last date for filing the appeal was 05.07.2022, but the appeal was filed on 06.07.2022, resulting in a delay of one day. The Tribunal emphasized that the filing of the appeal beyond the prescribed time limit rendered it not maintainable. Conclusion: The Tribunal concluded that while the Petitioners had engaged in bona fide litigation and were entitled to the exclusion of the period from 25.01.2022 to 22.06.2022 under Section 14 of the Limitation Act, 1963, the appeal was still filed one day late. Consequently, the appeal was not entertained and was rejected. The connected applications were also closed.
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