Tribunals and CommissionsFull Bench(2023) 09 NCLAT CK 3573

Yogesh Bosmiya vs Om Prakash Agarwal & Ors.

National Company Law Appellate Tribunal, New Delhi · Decided on 5 September 2023

HON’BLE JUDGES
Rakesh Kumar Jain, Member (Judicial) · Barun Mitra, Member (Technical) · Arun Baroka, Member (Technical)
CASE NUMBER
Company Appeal (AT) Insolvency No. 1127 of 2023 & I.A. No. 3933 of 2023

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Judgment

24 paragraphs · 980 words

O R D E R

Per: Justice Rakesh Kumar Jain:

I.A. No. 3933 of 2023. This Application is filed for seeking condonation of delay of 14 days in filing the present Appeal.

2.

The Appeal has been filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 against the Order dated 21st June, 2023 passed by National Company Law Tribunal, Mumbai Bench, Court III.

3.

The reason given in the Application for not approaching this Court within the prescribed period of 30 days and also spending another 14 days thereafter in approaching this Court are that the Impugned Order was reserved on 20.04.2023 and pronounced on 21.06.2023. The Appellant received the e-copy on 13.07.2023. It is averred that the Appellant was oblivious of the provisions of the Code and the rules and regulations and thus, the Appellant failed to take adequate steps to apply for the certified copy and also did not receive free certified copy from the NCLT. However, an advocate was engaged to file the Appeal but by the time the Appeal was prepared and sent to the Appellant, he was informed by the counsel that filing of certified copy of the Impugned Order is a pre-requisite. The Appellant approached another counsel who informed that Appeal can be filed without even having certified copy and in this process, the limitation of 30 days expired and also a further period of 14 days expired too.

4.

We have heard counsel for the Applicant/Appellant and perused the application.

5.

Since the Appeal has been filed under Section 61 of the Code, it is relevant to refer to Section 61 of the Code which is as follows:

“Section 61. Appeals and Appellate Authority.

(1)

Notwithstanding anything to the contrary contained under the Companies Act 2013 (18 of 2013), any person aggrieved by the order of the Adjudicating Authority under this part may prefer an appeal to the National Company Law Appellate Tribunal.

(2)

Every appeal under sub-section (1) shall be filed within thirty days before the National Company Law Appellate Tribunal:

Provided that the National Company Law Appellate Tribunal may allow an appeal to be filed after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing the appeal but such period shall not exceed fifteen days.

(3)

An appeal against an order approving a resolution plan under section 31 may be filed on the following grounds, namely:

(i)

the approved resolution plan is in contravention of the provisions of any law for the time being in force;

(ii)

there has been material irregularity in exercise of the powers by the resolution professional during the corporate insolvency resolution period;

(iii)

the debts owed to operational creditors of the corporate debtor have not been provided for in the resolution plan in the manner specified by the Board;

(iv)

the insolvency resolution process costs have not been provided for repayment in priority to all other debts; or

(v)

the resolution plan does not comply with any other criteria specified by the Board.

(4)

An appeal against a liquidation order passed under section 33, or sub-section (4) of section 54L, or sub-section (4) of section 54N, may be filed on grounds of material irregularity or fraud committed in relation to such a liquidation order.

(5)

An appeal against an order for initiation of corporate insolvency resolution process passed under sub-section (2) of section 54-O, may be filed on grounds of material irregularity or fraud committed in relation to such an order.”

6.

Section 61(1) provides a right of appeal to a person aggrieved by an order of the Adjudicating Authority to the NCLAT. Section 61(2) further provides a period of 30 days for the purpose of filing of Appeal before Appellate Tribunal under Section 61(1) of the Code. In case, the Appeal is not filed within the prescribed period of 30 days, proviso to Section 61(2) provides for a period of 15 days within which Appeal can be filed, satisfying the Appellate Authority that there was sufficient cause for not filing the Appeal in time. However, the period of 15 days cannot be extended and the Appellate Tribunal does not have the jurisdiction to consider and condone the delay beyond the period of 15 days.

7.

No doubt that the Appellant has a right to file an Appeal for which a period of 30 days has been prescribed but it is also true that beyond the period of 15 days, the limitation cannot be extended even by this Court as it does not have the jurisdiction. In this respect, regard may be had to the decision of the Hon’ble Supreme Court in National Spot Exchange Limited Vs. Mr. Anil Kohli, RP for Dunar Foods Limited, Civil Appeal No. 6187 of 2019 in which it has been held that after the expiry of 15 days, the limitation cannot even be condoned even under Article 142 of the Constitution of India.

8.

Be that as it may, the Appellant is required to show a sufficient cause for not approaching the Court within time while seeking condonation of delay within the window of 15 days, which means that sufficient cause is a pre-requisite to entertain the application and it is also true that the sufficient cause has to be to the satisfaction of Appellate Tribunal. The reason given by the Appellant/Applicant is totally flimsy because the Appellant has not given any detail as to when the Appeal was prepared and why the certified copy was not even applied for. We are totally unsatisfied with the reasons given in the Application for condonation of delay, therefore, the Application is hereby dismissed.

Company Appeal (AT) Ins. No. 1127 of 2023

1.

Since, the Application has been dismissed by an order of even date, therefore, the present Appeal is not duly constituted and the same is hereby dismissed.