2025 (2) TMI 960 - AT - IBC

Condonation of delay of 19 days in filing the present appeal - sufficient cause for delay or not - HELD THAT - As per Section 61 of the Code the period prescribed for filing the appeal before the Appellate Tribunal is 30 days. However in terms of the proviso to Section 61(2) the Appellate Authority has the jurisdiction to allow the appeal to be filed even after the expiry of prescribed period of 30 days if it is satisfied that there was sufficient reason for not filing the appeal within prescribed period but such period cannot be extended more than 15 days. As per the decision of the Hon ble Supreme Court in the case of National Spot Exchange Limited Vs. Anil Kohli 2021 (9) TMI 1156 - SUPREME COURT the Appellate Authority does not have the jurisdiction to condone the delay beyond the period of 15 days in any case. In the present case the impugned order was passed on 14.06.2024. The Appeal was required to be filed by the appellant within the prescribed period of 30 days which has to be computed from 15.06.2024 in terms of the Section 12(1) of the Limitation Act 1963. The period of 30 days counted from 15.06.2024 expired on 14.07.2024 - The period of 15 days provided in the proviso to Section 61(2) counted from 14.07.2024 expired on 29.07.2024. The appeal has been e-filed on 02.08.2024 i.e after the period of 4 days of expiry even of the period of 15 days on 29.07.2024. Counsel for the Appellant has submitted that the Court should exclude the period of two days spent by the Appellant in obtaining certified copy of the impugned order which was applied on 01.07.2024 and was received on 02.07.2024 - Even if the aforesaid period of two days are excluded in view of Section 12 of the Act the appeal would still be barred by two days. Similarly the holidays on 17.06.2024 29.06.2024 and 13.07.2024 which fell before 14.07.2024 (during the prescribed period) is no help to the Appellant because it is not the case where the Appellant has filed the appeal just on the reopening of the Court when the prescribed period of limitation was to expire rather the appellant has filed the appeal after the expiry of 45 days i.e. 15 days prescribed as the extended period in proviso to Section 61(2) for which the Appellant has to show sufficient cause for condonation of delay and is not part of the prescribed period of limitation. Conclusion - There is hardly any merit in the present application which calls for any interference as the appeal has been clearly filed after the expiry of period of 45 days and therefore this Court does not have the jurisdiction to condone the delay. Application dismissed.

Summary

The issues presented and considered in the judgment are as follows:1. Whether the Appellant's application for condonation of delay of 19 days in filing the appeal should be allowed?2. Whether the Appellate Tribunal has jurisdiction to condone the delay in filing an appeal beyond the prescribed period of 15 days?Issue-wise detailed analysis:Issue 1: Condonation of Delay- Relevant legal framework: Section 61 of the Code deals with appeals and appellate authority, providing for a prescribed period of 30 days for filing an appeal, extendable by a maximum of 15 days under certain conditions.- Court's interpretation and reasoning: The Court cited the Supreme Court decision in National Spot Exchange Limited Vs. Anil Kohli, which held that the Appellate Authority cannot condone a delay beyond 15 days.- Key evidence and findings: The impugned order was passed on 14.06.2024, and the appeal was filed on 02.08.2024, exceeding the prescribed period by 4 days even after excluding the time taken to obtain a certified copy of the order.- Application of law to facts: The Appellant argued for the exclusion of holidays and cited a previous decision, but the Court clarified that the benefit of court closures only applies to the prescribed period of 30 days, not the extended period.- Conclusions: The Court found no merit in the application for condonation of delay as the appeal was filed after the expiry of the extended period of 45 days, leading to the dismissal of the application.Issue 2: Jurisdiction to Condone Delay- Relevant legal framework: Section 61(2) of the Code allows the Appellate Authority to extend the filing period by up to 15 days under specific circumstances.- Court's interpretation and reasoning: The Court emphasized that the Appellate Authority cannot condone a delay beyond the maximum extension of 15 days, as per the statutory provisions.- Key evidence and findings: The Appellant filed the appeal after the expiry of the 45-day period, including the extended 15 days, without sufficient cause for the delay.- Application of law to facts: The Court clarified that the Appellant failed to demonstrate sufficient cause for the delay and that the holidays during the prescribed period did not justify the delay in filing the appeal.- Conclusions: Due to the Appellant's failure to file the appeal within the prescribed and extended periods, the Court lacked jurisdiction to condone the delay, resulting in the dismissal of the appeal.Significant holdings:- The Court upheld the statutory provisions limiting the Appellate Authority's power to condone delays beyond the prescribed and extended periods, as established in the case law and relevant legal framework.- The final determinations on each issue led to the dismissal of the application for condonation of delay and subsequently the dismissal of the appeal itself.The judgment emphasizes the strict adherence to statutory timelines for filing appeals and the limitations on the Appellate Authority's discretion to condone delays, based on established legal principles and precedents.