2024 (1) TMI 48 - AT - Companies Law

Procedure for filing an appeal - failure to submit certified copy of order of NCLT - Seeking permission to argue on the merit of the appeal - Appellant argued on interlocutory application which was filed for condonation of delay in re-filing - HELD THAT - The order impugned was passed on 13.06.2023 and thereafter the appeal was preferred on 26.07.2023. In normal course it was expected that the appellant would have obtained the certified copy of the order and filed the same without any further delay. An application for exemption in filing certified copy is to be filed where there is no time in filing appeal. Once an appeal is filed, it is expected that immediately thereafter certified copy will be filed - However, in the present case till date certified copy of the impugned order has not been brought on record. The fact remains that appeal has been preferred under Section 421 of the Companies Act, 2013 against an order dated 13.06.2023 passed by National Company Law Tribunal, New Delhi (herein after referred to as NCLT) whereby an application filed by the Appellant on the point of maintainability was rejected. The order further reflects that company petition was ripe up for hearing and in the case reply was also filed however belatedly maintainability point was raised by filing an application which has been rejected by the order impugned. The present appeal not entertained due to the latches on the part of the appellant, particularly in view of the fact that even after expiry of several months the appellant has not brought on record the certified copy of the order and also the fact that on instruction of the appellant on last date, i.e. on 18.09.2023 an advocate got the appeal adjourned for filing fresh Vakalatnama, whereas today it was intimated that the Counsel who had filed Vakalatnama along with Memo of Appeal has been again asked to appear - appeal dismissed.

Summary

Issues involved:
The issues involved in the judgment are condonation of delay in re-filing, exemption from filing certified copy of the order, maintainability of the appeal under Section 421 of the Companies Act, 2013, and the conduct of the Appellant.

Condonation of Delay in Re-filing:
The Appellant sought permission to argue on the merit of the appeal, but the Tribunal considered an application for condonation of delay in re-filing. The delay of 39 days led to the matter being placed before the Bench for this purpose. Despite certain reasons being assigned, the Tribunal allowed the application for condonation of delay. However, the conduct of the Appellant in handling the re-filing process was deemed unsatisfactory.

Exemption from Filing Certified Copy of the Order:
An interlocutory application for exemption from filing a certified copy of the order was also filed along with the appeal. The order in question was passed on 13.06.2023, and the appeal was filed on 26.07.2023. The Tribunal noted that the certified copy of the impugned order had not been brought on record as expected. The Appellant's failure to promptly file the certified copy was a point of concern for the Tribunal.

Maintainability of the Appeal under Section 421 of the Companies Act, 2013:
The appeal was filed under Section 421 of the Companies Act, 2013 against an order passed by the National Company Law Tribunal. The order rejected an application by the Appellant on the point of maintainability. The Tribunal refrained from expressing any opinion on the merit of the case but highlighted the importance of following procedural requirements, including timely filing of necessary documents.

Conduct of the Appellant:
The Tribunal expressed dissatisfaction with the conduct of the Appellant, particularly regarding the delay in filing the certified copy of the order and the inconsistent authorization of counsels. Despite several months passing, the certified copy was not brought on record. The Tribunal found the Appellant's conduct, such as changing counsels and requesting adjournments, to be unfair. Consequently, the appeal was dismissed based on the Appellant's conduct and procedural lapses.

This summary provides a detailed overview of the judgment, highlighting the key issues addressed by the Tribunal and the reasons behind the dismissal of the appeal.