2023 (7) TMI 960 - AT - Insolvency and Bankruptcy

Seeking Condonation of Delay of 13 days in filing the present Appeal - Sufficient reasons for delay present or not - time limitation for the purpose of filing an appeal - HELD THAT - In the present case, the Impugned Order was passed on 12.05.2023. The period of 30 days had expired on 11.06.2023 whereas the Appeal alongwith the Application for Condonation of Delay was filed on 26.06.2023. The reason given by the Appellant is that the Appellant was Ex- Parte before the Learned Tribunal in IA/846(CHE)/2020 in which the Impugned Order has been passed about which it came to know only on 27.05.2023. But no evidence is brought on record even prima facie to prove that the Appellant acquired the knowledge only on 27.05.2023. It is to be borne in mind that the legislature has provided only a period of 30 days for the purpose of filing of an Appeal in order to ensure expeditious disposal of the Litigation arising out of the Code and has further provided a window of only 15 days to the Appellate Tribunal to consider an Application for Condonation of Delay that too on being satisfied that there was a sufficient cause with the Appellant/Applicant for not approaching the Court by way of an Appeal in time (within the period of 30 days as prescribed). There are no substance in the present Application as it does not inspire confidence for the purpose of constituting a sufficient cause to satisfaction. Hence, the Application is hereby dismissed.

Summary

Issues involved:
The issues involved in the judgment are the challenge to the Order of the National Company Law Tribunal, Division Bench in an Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, and the Application for seeking Condonation of Delay in filing the Appeal.

Challenge to Order of NCLT:
The Appellant challenged the Order of the National Company Law Tribunal, Division Bench in an Application filed by the Liquidator under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Appeal was filed with an Application seeking Condonation of Delay of 13 days due to the Appellant being Ex-Parte before the Tribunal and needing time to trace the voluminous record relating to previous proceedings. The Right to Appeal is a Statutory Right under Section 61 of the Code, providing a period of 30 days for filing an Appeal, extendable by 15 days with sufficient cause. However, the Appellant failed to provide evidence to prove the delayed knowledge of the Order and the reason for consulting voluminous records was deemed a weak excuse by the Tribunal.

Condonation of Delay Application:
The Tribunal examined the Application for Condonation of Delay and found the Appellant's reasons for delay unconvincing. The legislature has set a strict timeline for filing Appeals to ensure expeditious disposal of Litigation under the Code. The Appellant's casual approach and lack of substantial evidence led to the dismissal of the Application for Condonation of Delay. Consequently, the Appeal was also dismissed as it was not duly constituted following the rejection of the Condonation of Delay Application.

This judgment highlights the importance of timely filing of Appeals in adherence to statutory timelines and the necessity of providing sufficient cause for any delays in the legal proceedings.