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TMI Blog2025 (2) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... hmedabad, they could not physically inspect the record in person. Equally facile is the explanation that despite constant coordination and follow up, the process of obtaining a certified copy of the impugned order took a lot of time. This feeble defence is belied by the fact that when we look at page 62 of Appeal Paper Book (APB) it is found that the date on which the application for certified copy was reapplied was 09.12.2024 and the NCLT Registry had delivered the certified copy on the same date. This clearly demonstrates that had the Applicant been serious and earnest in their efforts in pursuing the matter with the NCLT Registry, there would have been no need to wait for nearly four months to obtain certified copy of the impugned order which was pronounced as early as 21.06.2024. It is not persuaded to accept that the Applicant had been prevented by any exceptional reason beyond its control in obtaining certified copy of the impugned order in a timely fashion. It is well recognised that speed is of essence in IBC. It is a given that the need of speed is important both for insolvency as well as for liquidation process. It flows therefrom that once the liquidation process is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted hereunder:- "2.3. The Applicant/Liquidator most humbly states and submits that the delay in rectifying the defects in the present appeal has occurred, which is neither intentional nor deliberate but due to some inevitable and unavoidable circumstances of the case, primarily owing to the fact that the Applicant (original Appellant) as well as the counsel for the Applicant are based out of Ahmedabad, Gujarat and therefore, the deponent could not physically inspect the records of the Appeal in person. 2.4. That the Applicant most humbly submits that he has duly executed the Appeal within prescribed period of limitation alongwith the delay condonation application and had duly dispatched the same for physical filing to the local clerk based in New Delhi, however, due to some unfortunate and unforeseeable circumstances that developed thereafter, there was some delay in physical filing of the captioned appeal and rectifying the defects primarily owing to the reasons as briefly stated herein below: A. Though the defects were notified by the Ld. Registry on 12.08.2024 which were to be cured by or before 19.08.2024, however, on account of some technical issue or otherwise, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the part of the Applicant, it has been contended that this cannot constitute a valid ground for condonation of delay at the refiling stage and deserves to be rejected. 5. It was also pressed that the Applicant besides raising indefensible grounds also displayed laxity in remedying the defects even though these defects were pointed out well in time by the NCLAT Registry. In support of their contention that condonation of delay needs to be buttressed by adequate and sufficient reasons, the Ld. Senior Counsel adverted reference to the judgment of this Tribunal in Adisri Commercial Private Limited vs. Reserve Bank of India in CA (AT)(Ins) No. 1293 & 1294 of 2022. Reliance was also placed on the judgment of the Hon'ble Delhi High Court in Dy. CE/C/ Jalandhar City Vs. Spacechem Enterprises 2023 SCC Online Del 978 to assert that while the courts enjoy jurisdiction to condone refiling delay, the conduct of the Applicant seeking condonation must be tested on the anvil of whether the Applicant acted in this direction with due diligence and dispatch. It was contended that the Applicant has not been able to effectively establish that the delay was on account of reasons beyond its control. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Delhi-based clerk to locate the original set of documents…. 9. Subsequently around 7th December, 2024, the deponent was informed that the original set of the missing documents were finally found by the Clerk, however, the original certified copy of the impugned order as well as one original affidavit accompanying the delay condonation application was still missing. That immediately thereafter, the deponent had re-applied for the certified copy of the impugned order on 09.12.2024 as well as re-executed the Affidavit accompanying captioned delay condonation Application on 10.12.2024. It is pertinent to mention that at the time of original filing of the Appeal on 03.08.2024, the certified copy dated 31.07.2024 of the impugned order was originally filed, however subsequently another certified copy dated 09.12.2024 was filed at the time of refiling…. 10. It is most humbly reiterated that upon failing to retrieve the entire set of misplaced documents, the Appellant reapplied for a certified copy of the impugned order and reconstructed the missing documents with due diligence. Such actions unequivocally demonstrate the Appellant's bona fide intent and commitment t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a in the matter of Mool Chandra vs. Union of India in Civil Appeal No. 8435-8436 of 2024 had observed that if no fault can be laid at the doors of the Applicant and cause for delay shown is sufficient, then a liberal and justice-oriented approach should be adopted to condone the delay. Reliance has also been placed on the judgment of the Hon'ble Supreme Court in the matter of Sheo Raj Singh v. Union of India, (2023) 10 SCC 531 wherein it was held that the expression "sufficient cause" in condoning delay is adequately elastic. It was contended that in the present case the delay was a case of inadvertent and unintended administrative lapse and hence needs to be dealt in a lenient manner. It was contended that the grounds for refiling delay in the present facts of the case were genuine and hence deserved to be viewed in a liberal manner to subserve the ends of justice. 9. We have heard the rival contentions of both the parties and perused the records carefully. 10. At the outset, we would like to make it clear that we are quite conscious that while considering a prayer for condonation of refiling delay, the standard of scrutiny is expectedly less rigorous than the standard applied i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for filing the appeal. Moreover, though they had e-filed their appeal on 03.08.2024 and also sent an advance copy to the Respondent, their inability to physically file the petition was caused by the fact that their local clerk in Delhi had misplaced the certified copy of the impugned order and could not locate the same. It has been further submitted that after a lot of effort and constant coordination/follow up, the Applicant reapplied for another certified copy of the impugned order which took time and hence the delay in refiling the appeal. 15. What we need to see now is whether administrative oversight leading to misplacement of documents can be viewed as a plausible explanation to justify the delay. The above cited alibi of geographical distance between Ahmedabad and Delhi acting as an impediment in refiling the appeal on time does not meet the reality on ground. Any prudent person would agree that there is no dearth of transport infrastructure and communication network interlinking these two cities. Hence, to our minds, raising the issue of geographical distance between Ahmedabad and Delhi acting as a barrier is a farcical excuse which fails to convince us. Equally faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o overhaul the then prevailing insolvency regime and one of the major objectives was to set right the problem of delays which crippled the implementation of the bankruptcy systems in India. It is well recognised that speed is of essence in IBC. It is a given that the need of speed is important both for insolvency as well as for liquidation process. It flows therefrom that once the liquidation process is set into motion, the liquidator is expected to act swiftly and ensure that minimal time is lost in procedural technicalities including curing of defects etc. while conducting the liquidation exercise. The initiation and closure of liquidation is a time-bound process which is to be completed within one year. A liquidator therefore has the principal responsibility of completing the liquidation process as quickly as possible by adhering to the legal regulations and time-frame set therein for conduct of the liquidation process and not allow scope of any unnecessary delay. This element of diligence is clearly amiss in the disposition of the Applicant-Liquidator. 19. Seen against this backdrop and the discussion in the foregoing paragraphs, we find that the delay in refiling by nearly fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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