Limitation Period u/s 61 Commences From Date of Pronouncement of Order: NCLAT [Read Order]

The National Company Law Appellate Tribunal ( NCLAT ) Principal Bench, New Delhi held that the period of limitation under section 61 of the Insolvency Bankruptcy Code ( IBC ), 2016  is to be counted from the date of pronouncement of the order in the court.

Two appeals were filed against the common order of the tribunal wherein the tribunal dismissed two applications. Counsel for Tarandeep Kaur Ahluwalia , the applicant in both the applications submitted that the order was passed on 03.07.2024, but the same was uploaded on the website of the tribunal (NCLT) on 18.07.2024.

Become a GST Pro - Basic to Advanced Course, Click here

The appellants stated that they filed their appeal with a minor delay and that they requested the NCLAT to condone the same. They claimed that the order was passed on 03.07.2024 but was only accessible to them on 18th July,2024. As a result, they calculated the appeal period from the date of the upload.

The applicants stated that the order was passed on 03.07.2024 but the same was uploaded on the website of the NCLT on 18.07.2024. The Appellant stated that it calculated the 30-day period from 18.07.2024 and that the appeal had been filed within this period with one-day delay which can be condoned by the tribunal in accordance to Section 60(2) of the code.

The Appellant also relied upon a decision of the SC in the case of Sanjay Pandurang Kalate Vs. Vistra ITC (India) Limited & Ors and stated that in Form NCLAT 1, for filing appeal it is provided in para 2 of the said form that “Date on which the order appealed against is communicated and proof thereof”. As a result, while concluding the argument, the counsel stated that the limitation must be counted from the date of communication of the order under the code and not from the date of pronouncement of the order.

Become a GST Pro - Basic to Advanced Course, Click here

The counsel for the Respondents stated that the limitations should be counted from the date of passing of the order and not from the date when it was uploaded on the website of the tribunal. In this regard, the Respondent also relied upon the case of V. Nagrajan Vs. SKS Ispat And Power Limited & Ors.,, stating that the order was passed at the same time after hearing was concluded and in the presence of the parties.

It was also stated by the respondent that if the limitation is to be counted from the date of pronouncement of the order, then the appeal has been filed after the expiry of 16 days which cannot be condoned according to the judgement of the supreme court in the case of National Spot Exchange Limited Vs. Mr. Anil Kohli, Resolution Professional for Dunar Foods Limited, wherein the court held that the period beyond 15 days cannot be condoned even in the exercise of powers under Article 142 of the Constitution.

The Respondent also stated that the judgement of the Appellant is not applicable in this case scenario. It stated that the order in that case was not the order was not pronounced on 17.05.2023 and was uploaded on 30.05.2023 to show that the same has been pronounced on 17.05.2023 and in that background the Hon'ble Supreme Court has held that the knowledge of the pronouncement of the order was from the date of uploading the order and therefore, the period between 17.05.2023 till 30.05.2023 was excluded.

Become a GST Pro - Basic to Advanced Course, Click here

The Tribunal stated that the order was pronounced on 03.07.2024 in the court after hearing the counsel of both the parties and therefore, it stated that the limitation would start not from the date i.e 18.07.2024 when the order was uploaded by the NCLT on its website, but when the order was pronounced in terms of the decision. The Court upheld the case of V.Nagarjan.

A three member bench comprising of Justice Rakesh Kumar Jain, Mr. Barun Mitra (Member Technical) and Mr. Naresh Salecha (Member Technical), disposed two applications filed by the appellant seeking condonation of one-day delay in filing their appeal against the order of the National Company Law Tribunal (NCLT).

It was observed that if the limitation is to be counted from 03.07.2024, the appeals have been filed after expiry of 16 days which cannot be condoned in any manner by this Court because in Section 61(2) proviso it has been clearly provided that the window of 15 days is provided after 30 days for the purpose of seeking condonation of delay after assigning sufficient cause that too to the satisfaction of this Court but in no case the period of 15 days can be extended. Here it is a case where the appeal has been filed on 16th day i.e. beyond the period of 15 days.

The bench held that the period of limitation is to be counted from the date of pronouncement of the order in the court.

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