2025 (1) TMI 948 - AT - IBC

Condonation of 166 days delay in refiling of Company Appeal - sufficient reasons for delay or not - HELD THAT - Coming to the first explanation offered which was bereavement in the family of the counsel and the need to perform attendant rituals we are inclined to agree to the time lapse of a month as has been claimed by the Applicant to justify the delay. This period of one month admittedly came to an end in mid-May which time this Tribunal was fully operational. However there seems to have been total inertia and non-action on the part of the Applicant to take any steps towards removing the defects. Delay thereafter from June onwards has been conveniently attributed to the summer vacations of the court. This is a lame and hackneyed excuse which clearly has no legs to stand on since the Registry is always open and working even during vacation time. It is not impressed with vacations being made the scapegoat to cover up the Applicant s lethargy in curing the defects. Another ground cited by the Applicant is that a lot of time got consumed as they had to repeatedly make corrections because of defects being pointed out by the Registry on four different occasions. This argument is not convincing either as it only substantiates the contention of the Respondent that the Applicant was lackadaisical and negligent while making the corrections and removing the defects in a timely manner. Had the Applicant been more alert careful and vigilant they would not have been required to undergo the rigmarole of correcting defects four times. Conclusion - Sufficient grounds have not been made out for condonation of 166 days in refiling of the Company Appeal. The refiling delay condonation application is rejected.

1. ISSUES PRESENTED and CONSIDERED

The core legal question in this judgment revolves around whether the delay of 166 days in refiling the Company Appeal (AT) (Insolvency) No. 1913 of 2024 should be condoned. The Tribunal needed to determine if the reasons provided by the Applicant were sufficient and genuine to warrant such condonation.

2. ISSUE-WISE DETAILED ANALYSIS

Relevant legal framework and precedents:

The legal framework governing the condonation of delay in refiling appeals typically involves principles of justice and fairness, allowing for leniency in cases where the delay is justified by circumstances beyond the control of the applicant. The Tribunal considers whether the reasons for the delay are genuine and plausible, and whether the delay was caused by factors beyond the applicant's control.

Court's interpretation and reasoning:

The Tribunal acknowledged that applications for condonation of delay should be treated with a liberal and lenient approach. However, it emphasized that when the delay is unduly protracted, the Bench must be satisfied with the genuineness and plausibility of the explanation offered. The Tribunal analyzed the reasons provided by the Applicant to determine if they were beyond the Applicant's control.

Key evidence and findings:

The Applicant cited several reasons for the delay, including bereavement in the family of the counsel, summer vacations, limited staffing, and repeated corrections due to defects pointed out by the Registry. The Tribunal found that while the bereavement justified a delay of one month, the subsequent reasons were not convincing. The Tribunal noted that the Registry operates even during vacations, and the repeated corrections indicated negligence on the part of the Applicant.

Application of law to facts:

The Tribunal applied the principle that delay condonation requires genuine reasons that are beyond the control of the Applicant. It found that the reasons provided, such as vacations and repeated corrections, did not meet this standard. The Tribunal concluded that the delay was not caused by factors beyond the Applicant's control but rather by inaction and negligence.

Treatment of competing arguments:

The Respondent argued that the delay was inordinately long and due to a casual approach by the Applicant. The Tribunal agreed with the Respondent, finding that the Applicant's reasons lacked cogent basis and were insufficient to justify the delay. The Tribunal dismissed the Applicant's arguments as perfunctory and unconvincing.

Conclusions:

The Tribunal concluded that the Applicant failed to provide sufficient grounds for condonation of the 166-day delay. It found that the delay was primarily due to the Applicant's negligence and lack of thoroughness, rather than any external factors beyond their control.

3. SIGNIFICANT HOLDINGS

Preserve verbatim quotes of crucial legal reasoning:

"It goes without saying that it is normative that re-filing delay condonation application warrants a liberal and lenient treatment and is a matter which largely lies between the Court and the Applicant."

"We are therefore not impressed with vacations being made the scapegoat to cover up the Applicant's lethargy in curing the defects."

Core principles established:

The Tribunal established that while delay condonation applications should be treated leniently, the reasons provided must be genuine, plausible, and beyond the Applicant's control. The Tribunal emphasized the importance of diligence and vigilance in refiling appeals.

Final determinations on each issue:

The Tribunal rejected the application for condonation of the 166-day delay in refiling the Company Appeal (AT) (Insolvency) No. 1913 of 2024. Consequently, the Memo of Appeal was also rejected, as the Applicant failed to demonstrate sufficient grounds for the delay.

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