Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2021 (6) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 880 - NATIONAL COMPANY LAW TRIBUNAL , CHENNAI BENCHCondonation of delay of forty eight days in filing of the present Application on behalf of the Applicant - applicability of time limitation in section 7 and 9 of IBC - HELD THAT:- It is no longer res Integra as held by the Hon'ble Supreme Court of India in a couple of decisions that Section 5 of the Limitation Act, 1963 would apply to a proceeding under Section 7 or 9 of IBC, 2016 and hence bowing down to the provisions of Article 141 of the Constitution of India, though this Tribunal had expressed a view otherwise in the matter of M/S. FNA MULTI-TRADE PRIVATE LIMITED VERSUS M/S. VA TECH WABAG LIMITED [2020 (9) TMI 1188 - NATIONAL COMPANY LAW TRIBUNAL, CHENNAI] taking into consideration the decision of the Hon'ble Madras High Court under the Presidency Town Insolvency Act, 1909. Be that as it may, the Applicant who seeks for condonation of delay has to adequately explain to the satisfaction of this Tribunal the 'sufficient cause' and 'reasonableness' for condoning the delay in filing the main Application. It is the cardinal principle of limitation that the Applicant, who seeks to condone the delay, has to explain the delay for each and every day as sought for, more particularly this Tribunal is of the considered view in relation to a proceeding under IBC, 2016 being a proceeding in rem and has an impact on all the stakeholders of the Corporate Debtor unlike a suit for recovery of money filed before the Civil Court and in the circumstances this Tribunal is required to be more circumspect in condoning the delay as compared to a liberal approach as canvassed by the Applicant. The stand of the Applicant that the Operational Creditor is operating its office from Chennai depot is not a 'sufficient cause' or a 'reasonable cause' for the Tribunal to condone the delay in filing the main Application. In the present case, the Applicant has not satisfactorily explained to this Tribunal the delay of 48 days (albeit 79 days) in filing the main Application - Application dismissed.
|