2023 (10) TMI 450 - AT - Insolvency and Bankruptcy

Condonation of Delay in filing Appeal - Certified Copy was prepared on 27.04.2023 and was delivered on 03.05.2023 - present Appeal was e-filed on 10.05.2023. HELD THAT - Sub- Rule (2) of Rule 22 of the National Company Law Appellate Tribunal Rules 2016 regarding presentation of Appeal provides that every Appeal shall be accompanied by a Certified Copy of the Impugned Order. NCLAT Rules framed under Section 469 of the Companies Act 2013 also bind the litigants under the IBC. The litigant s efforts to apply for a Certified Copy before filing Appeal cannot be faulted. It is clear from the provision of Section 12(2) that the period taken in obtaining the copy of the Order appealed against is to be excluded in calculating the limitation period in filing for any legal proceedings. Excluding the period spent in obtaining Certified Copy of the Impugned Order the present Appeal has been filed within the period of 30 days. Considering the provisions of Section 12(2) of the Limitation Act 1963 the delay in filing of the company appeal condoned by allowing benefit of exclusion of period spent in obtaining paid Certified Copy of the Order from AA (National Company Law Tribunal New Delhi). Aplication allowed.

Summary

Issues involved:
1. Condonation of delay in filing Comp. App. (AT) (Ins.) Nos.856 & 857/2023.
2. Appeal against the Order dated 24.03.2023 in New IA/1596/2023 and New IA/1597/2023 filed in main C.P. (IB) 271/PB/2017.

Issue 1: Condonation of Delay
The Appellant sought Condonation of Delay in filing Comp. App. (AT) (Ins.) Nos.856 & 857/2023 due to delay in obtaining the Certified Copy of the Impugned Order. The time taken in filing the Appeal was 30 days, excluding the period spent in obtaining the copy. The National Company Law Appellate Tribunal Rules, 2016, and Section 12(2) of the Limitation Act, 1963, allow for exclusion of time spent in obtaining the copy of the order appealed against. Referring to a Supreme Court case, the Tribunal decided to condone the delay based on the exclusion of the period spent in obtaining the Certified Copy.

Issue 2: Appeal against Order in C.P. (IB) 271/PB/2017
The Appeal was filed against the Order dated 24.03.2023 in C.P. (IB) 271/PB/2017. The Appellants had entered into MoUs with the Respondent, agreeing to loan payments and security arrangements. The Appellants filed a claim application before the Resolution Professional, which was declined, leading to a rejected Application for Condonation of Delay by the Adjudicating Authority. The Appellants claimed that due to medical issues and lack of awareness, their claim was delayed. The Respondent argued that the claim was not maintainable and filed with mala fide intentions. Despite the Appellants' arguments, the Tribunal noted the significant delay of 1270 days in filing the claim, after the Resolution Plan was approved by the Committee of Creditors. Citing a Supreme Court judgment, the Tribunal dismissed the Appeal, stating that reopening the issue would derail the Corporate Insolvency Resolution Process.

This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key arguments and decisions made by the National Company Law Appellate Tribunal.