2023 (11) TMI 831 - AT - Insolvency and Bankruptcy

Prayer for condonation of 103 days refiling delay - delay on the ground of change of the counsel on record - HELD THAT - The earlier order dated 22.02.2023 passed in Appeal No.39 of 2021 was for deferring the hearing to 20.03.2023. There was no decision taken by the Adjudicating Authority regarding claim of the Respondent in the said order on merits - It is satisfying that the said order cannot be reason to say that the Adjudicating Authority could not have passed order on 10.05.2023. The order dated 10.05.2023 is not a review or modification of the earlier order as contended by learned counsel for the Appellant. Thus, there is no error in the order dated 10.05.2023 passed by the Adjudicating Authority issuing directions. Learned counsel for the Respondent submits that the order has not yet been complied by the Liquidator in which the Adjudicating Authority has granted two weeks time to the Liquidator to take appropriate steps - the time granted to the Liquidator extended for further period of two weeks from today to comply with the order of the Adjudicating Authority. Appeal dismissed.

Summary

Issues:
1. Condonation of delay in refiling the appeal.
2. Appeal against the order of the Adjudicating Authority regarding rejection of claim.

Condonation of Delay Issue:
The application sought condonation of a 103-day delay in refiling the appeal due to a change in counsel and defects marked by the Registry. The Respondent argued that there was no change in counsel as the same counsel signed both the memo of appeal and the condonation application. The Tribunal examined the Vakalatnama filed by the new counsel, dated 18.09.2023, and found it in line with the claim of appointing new counsel in September 2023. Concluding that the delay was not deliberate, the Tribunal allowed the condonation of the 103-day delay, as sufficient cause was shown.

Appeal Issue:
The appeal was against an order by the Adjudicating Authority regarding the rejection of a claim by the Respondent, NTPC Ltd., communicated via email. The Adjudicating Authority directed the Liquidator to consider the claim within two weeks, respecting relevant regulations, without prejudice to ongoing Arbitral proceedings. The Appellant challenged this order, citing a previous order deferring the hearing to await the conclusion of the Arbitral proceedings. The Tribunal clarified that the earlier order did not decide on the claim's merits and, therefore, did not prevent the subsequent order. It upheld the Adjudicating Authority's order, granting an additional two weeks for the Liquidator to comply. The appeal was dismissed accordingly.