NCLAT not Empowered to condone delay exceeding 15 days from Period of 30 days under the provision of IBC: Supreme Court [Read Judgment]

NCLAT - IBC - Supreme Court - Limitation Period - Taxscan

The Supreme Court held that the National Company Law Appellate Tribunals (NCLAT) are not empowered to condone delay exceeding 15 days from the period of 30 days under the provision of the Insolvency and Bankruptcy Code (IBC).

Mr. Maninder Singh, senior counsel appearing on behalf of the appellant, National Spot Exchange Limited has submitted that though the learned Appellate Tribunal may be justified in dismissing the appeal on the ground of limitation by holding that the Appellate Tribunal has no jurisdiction to condone the delay beyond 15 days, it is prayed to exercise the powers under Article 142 of the Constitution of India, in the peculiar facts and circumstances of the case.

The appeal was vehemently opposed by Mr.Abhishek, an Advocate appearing for the IRP for the corporate debtor. It is submitted that Section 61(2) of the Code provides for the power of the Appellate Tribunal to condone the delay in the appeal. It is submitted that the Appellate Tribunal can condone the delay of only 15 days over the period of 30 days if there is a sufficient cause. It is submitted that beyond the period of 15 days, over the period of 30 days, the Appellate Tribunal has no jurisdiction to condone the delay. It is submitted that therefore the learned Appellate Tribunal has rightly and correctly dismissed the appeal on the ground that it did not have the power to condone the delay beyond the period of 15 days, over the period of 30 days, i.e., in the present case the delay of 44 days.

The division bench of Justice M.R. Shah and Justice Aniruddha Bose held that even the certified copy of the order passed by the adjudicating authority was applied beyond the period of 30 days and as observed hereinabove there was a delay of 44 days in preferring the appeal which was beyond the period of 15 days which maximum could have been condoned and in view of specific statutory provision contained in Section 61(2) of the IB Code, it cannot be said that the NCLAT has committed any error in dismissing the appeal on the ground of limitation by observing that it has no jurisdiction and/or power to condone the delay exceeding 15 days.

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