The Supreme Court of India has dismissed an appeal filed against the order of the National Company Law Appellate Tribunal ( NCLAT ) due to a delay of 142 days, citing the ground of limitation under Section 62 of the Insolvency and Bankruptcy Code 2016.
The case originated from a dispute between the Department of State Tax and ZICOM SAAS Pvt Ltd and another. The Department of State Tax filed an appeal against the final judgment and order passed by NCLAT. The appeal sought to challenge the decision made by the NCLAT regarding taxation issues.
The crux of the matter lay in the delay of 142 days in filing the appeal, which exceeded the permissible limit under Section 62 of the Insolvency and Bankruptcy Code 2016.
The appellant, the Department of State Tax was represented by Mr. Aaditya Aniruddha Pande, Mr. Aditya Krishna, Mr. Siddharth Dharmadhikari, Mr. Bharat Bagla, and Mr. Sourav Singh. They emphasised the importance of the issues at stake and urged the court to consider the merits of the case despite the delay.
The respondents, ZICOM SAAS Pvt. Ltd. and another asserted that the appeal should be dismissed without going into the merits of the case due to the significant delay in filing. They highlighted the procedural irregularities and the adverse impact of the delay on the administration of justice.
The apex court, presided over by Chief Justice Dr. Dhananjaya Y Chandrachud, alongside Justices J.B. Pardiwala and Manoj Misra held that the appeal could not be entertained due to the delay of 142 days, which exceeded the permissible limit under Section 62 of the Insolvency and Bankruptcy Code 2016.
Section 62 of the Insolvency and Bankruptcy Code, 2016 deals with the provisions related to Appeal to Supreme Court. As per Section 62(1), any person aggrieved by an order of the National Company Law Appellate Tribunal may file an appeal to the Supreme Court on a question of law arising out of such order under this Code within forty-five days from the date of receipt of such order. Further, as per Section 62(2), the Supreme Court may, if it is satisfied that a person was prevented by sufficient cause from filing an appeal within forty-five days, allow the appeal to be filed within a further period not exceeding fifteen days.
The court dismissed the appeal on the ground of limitation stressing the importance of adhering to procedural requirements and deadlines in legal proceedings. It highlighted the principle that parties must diligently pursue their rights within the prescribed timeframes to ensure the efficient administration of justice.
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