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Synopsis

The National Company Law Appellate Tribunal has recently rejected an application to condone the delay in filing an appeal, stating that seeking legal opinion and engaging counsel is not a sufficient cause to condone the delay.

The NCLAT bench, comprising Judicial Member Rakesh Kumar Jain and Technical Member Shreesha Merla, was hearing an application seeking to condone the delay of 15 days in filing an appeal against the order of NCLT.

The order was passed on 23.06.2023, and the appellant received the free certified copy of the order of the Tribunal on 26.06.2023. However, the appeal was filed on 11.08.2023, exactly on the last day of the limitation period, i.e., the 15th day.

The appellant contended that after obtaining the certified copy of the order, they had to seek legal opinion, approach this Appellate Tribunal, and engage counsel in Chennai for filing the appeal.

Section 61 of the Insolvency and Bankruptcy Code, 2016 (Code) grants the right to file an appeal against the order of the Adjudicating Authority. Additionally, Section 61(2) specifies a period of 30 days for filing such an appeal.

However, if the 30-day period lapses without filing the appeal, the proviso to Section 61(2) allows for an additional window of 15 days. During this time, the appellant can file the appeal but must seek condonation of delay by providing sufficient cause for the delay.

The NCLAT observed that the appeal was filed precisely on the 45th day, counting from 26.06.2023 (30 days plus an additional 15 days). However, if the period of limitation is calculated from 23.06.2023, it would be deemed filed on the 48th day.

Citing a Supreme Court decision, the NCLAT emphasized that any delay beyond 15 days cannot be condoned, as the Appellate Authority lacks jurisdiction to entertain such delays.

As a result, the NCLAT rejected the application, stating that the reasons provided were insufficient to warrant condonation of the delay.

“Be that as it may, after examining the reasons given in paragraph (e) of the application we are of the considered opinion that it is not a sufficient cause for the purposes of seeking condonation of delay because the appellant could have easily approached the Appellate Tribunal within the period of 30 days as the appeals are filed through e-filing,” the order reads.

Advocates Krishna Dath M and MS Viswanathan appeared for the appellant.

Chandramouli Prabhakar appeared for the respondent.

Case title: Anish Lawrence & Anr vs Renahan Vamakesan.