Inflexible Rule cannot be Laid Down to Condone Delay u/s 61 of IBC: NCLAT [Read Order]
While allowing the condonation application, the Tribunal held that sufficient cause has been shown for condonation of five days delay in filing of the Appeal
Inflexible Rule – NCLAT – Insolvency Bankruptcy Code – 61 of IBC – NCLAT Delhi – taxscan
Inflexible Rule – NCLAT – Insolvency Bankruptcy Code – 61 of IBC – NCLAT Delhi – taxscan
The New Delhi bench of National Company Law Appellate Tribunal ( NCLAT ) has held that the condonation of delay in filing of the Appeal under section 61 of the Insolvency Bankruptcy Code ( IBC ), 2016, no inflexible rule can be laid down while exercising jurisdiction to condone the delay.
The application for condonation of delay of five days in filing of the Appeal was fil ed by Dhiren Shantilal Shah RP of High Ground Enterprise Ltd. It was submitted that he was unable to file the present Appe al against the order dated 19.12.2023 within the limitation period due to the below-mentioned reasons-
Become a PF & ESIC expert with our comprehensive course - Enroll Now
It was stated that the applicant is living in Mumbai and due to health ailments, he was unable to seek timely legal advice for filing the Appeal before this Hon'ble Appellate Tribunal. He could access and read the impugned order dated 19.12.2023 only after a week or two after the impugned order was uploaded. That upon becoming aware of the impugned order, the Applicant due to his health ailments, could not immediately seek legal guidance and advice. It was submitted that the delay in filing the appeal is partly due to the time taken to search for legible/clear copy of the bank statement.
Become a PF & ESIC expert with our comprehensive course - Enroll Now
Per contra, the respondent submitted that Applicant in the present application has nowhere mentioned good and sufficient/ justifiable cause, as to why the delay should be condoned.
Section 61 of the IBC which provides for condonation of delay in filing the appeal and as per sub-section (2) proviso of the Insolvency and Bankruptcy Code, 2016 , the Court has jurisdiction to condone the delay of only 15 days after expiry of period of limitation.
In the case of Pathupati Subba Reddy (Died) by LRs & Ors. vs. The Special Deputy Collector (LA) (2024) it was held that the courts have adopted a very liberal approach in construing the phrase 'sufficient cause' used in Section 5 of the Limitation Act in order to condone the delay to enable the courts to do substantial justice and to apply law in a meaningful manner which subserves the ends of justice.
The three member bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) observed that the delay in filing of the Appeal is only five days and sufficient explanation was given by the Appellant/ Applicant.
Become a PF & ESIC expert with our comprehensive course - Enroll Now
The Appeal has been filed by the Resolution Professional (“RP”), who is living in Mumbai and in the application, it was pleaded by the RP that due to health ailments, he was unable to seek timely legal advice in filing the Appeal and further it is stated that one of the annexures filed in the Company Petition No.696 of 2020 was dim and an endeavour was taken to file clear and legible copy, for which certain time was taken.
While allowing the condonation application, the Tribunal held that sufficient cause has been shown for condonation of five days delay in filing of the Appeal.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
