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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 ..... ribunal vide order dated 13.12.2024 which notice was accepted in Court by the Ld. Counsel for Respondent. As prayed, the Respondent was allowed two weeks' time to file their reply and Applicant was allowed the liberty to file their rejoinder. 3. The Applicant has given the following explanation at paragraphs 2.3 to 2.4 of the application justifying their refiling delay which is extracted 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 unfores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that in the application for condonation of delay, the reason for delay depicted was time taken in seeking legal opinion. On the other hand, in the refiling delay condonation application, an entirely new and specious ground has been created which is "misplacement of documents". Holding misplacement of documents as solely attributable to the wilful negligence and lack of diligence on 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 D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel of the deponent were regularly following up with the clerk.... 8. It is pertinent to highlight that both the Appellant and the counsel for the Appellant are based in Ahmedabad. This geographical factor further underscores the administrative oversight as being devoid of any mala fide intent. The Appellant maintained constant communication and follow-up with the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Vs. TDT Copper Ltd." 2022 SCC OnLine NCLAT 3516 wherein it has been held that a party exercising its rights to file a statutory appeal has not to be shut out on some procedural or some technical defects when defects notified have been removed although with some delay for justifiable cause. It was also stated that the Hon'ble Supreme Court of India 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that one of the principal grounds adduced to explain the delay was that since the Applicant and their counsel were based out of Ahmedabad, they could not physically inspect the record in person. The distance between Ahmedabad and Delhi also came in the way as the Applicant was required to coordinate with their clerk located in Delhi who was responsible 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only two half-pages which needed translation as placed by the Applicant at pages 153-154 of APB. By no stretch of imagination can two pages of translation work consume a period of nearly four months' time. This explanation also fails to inspire our confidence. 18. We also cannot lose sight of the fact that IBC was introduced as a legislative fiat to 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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