NCLAT condones delay of 147 days on Late Filing of Appeal due to Bonafide litigious activity [Read Order]

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising of Justice M. Venugopal, Judicial Member and Naresh Salecha, Technical Member condoned delay of 147 days on late filing of appeal due to bonafide litigious activity.

The Bench while adjudicating an appeal filed in M.K. Resely & Ors. v Union Bank of India, has condoned a delay of 147 days in filing of appeal before NCLAT and the delay occurred when the appellant, M.K. Resely preferred an appeal before the High Court of Kerala on banafide intention other than approaching the NCLAT.

The Liquidator of M/s. Raihan Healthcare Private Limited (Corporate Debtor) had filed an application before the Adjudicating Authority (NCLT Kochi) to add the ‘personal properties’ of the ‘Petitioners’ or ‘Appellants’, into the ‘Liquidation Estate’ of the ‘Corporate Debtor’.

The plea of the Liquidator was allowed by the Adjudicating Authority hence the said order was challenged by the appellants in the High Court of Kerala, which was later dismissed. Later a writ petition was also filed which was also dismissed. Along with the appeal, the Appellants filed an Interim Application before the NCLAT seeking exclusion of the period from 25.01.2022 till 22.06.2022 (147 days) in computing the period of Limitation of the Appeal.

The Learned Counsel for the appellant submitted that if the period of ‘147 Days’ from 25.01.2022 till 22.06.2022 are excluded, under Section 14 of the Limitation Act 1963, then, the instant application is within the time and that the time taken for filing the Writ Petition is ‘One Day’ time taken for preferring an ‘Appeal’ before this ‘Tribunal’, is ‘14 days’ from 22.06.2022 and further ‘147 days’ is excluded, then, the ‘Appeal’ is presented, well within the specified period prescribed under Section 61 of the Insolvency and Bankruptcy Code, 2016.

The Bench observed that “In view of the fact, that the ‘Petitioners’ / ‘Appellants’ have indulged in ‘Bonafide Litigious Activity’before the Hon’ble High Court of Kerala, this ‘Tribunal’, by construing the ingredients of Section 14 of the ‘Limitation Act’ 1963, in a liberal manner and by applying ‘Equity’, permits the exclusion of period from `25.01.2022 till 22.06.2022’ (‘147 days’), in computing the ‘Period of Limitation’, and consequently `disposes of’ without Costs.”

To Read the full text of the Order CLICK HERE

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