Mr. G. (Appellant) filed an application under Section 7 of the IBC, 2016 with the National Company Law Tribunal (NCLT) seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against BW Private Limited. On
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2024
Mr. G. (Appellant) filed an application under Section 7 of the IBC, 2016 with the National Company Law Tribunal (NCLT) seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against BW Private Limited. On 26th August, 2022, NCLT dismissed the application. Subsequently, on 2nd September, 2022, the Appellant applied for a certified copy of the NCLT order, which the NCLT's registry received on 5th September, 2022. On September 15, 2022, the certified copy of order was provided to the Appellant. Following this, on 10th October, 2022, the Appellant e-filed an appeal with the National Company Law Appellate Tribunal (NCLAT) against the NCLT order along with an application for condonation of a five-day delay. As a Company Secretary of petitioner company [appellant] advise about time barred issues/admissibility of appeal before NCLAT.
Answer & Explanation:
Section 61 of the IBC specifies a 30-day deadline for filing an appeal against an NCLT order, and the NCLAT can only condone a delay of up to 15 days if sufficient cause is shown. Section 61 of the IBC does not require the appellant to wait for the receipt of a certified copy of the order before filing an appeal. In recently decided case of Sanket Kumar Agarwal vs. APG Logistics Private Limited (2023), Hon'ble Supreme Court of India held that the date of pronouncement of the order and time taken to provide certified copy by the Adjudicating Authority would stand excluded from limitation period for filing an appeal before the National Company Law Appellate Tribunal under Section 61 (2) of the Insolvency and Bankruptcy Code, 2016. It was noted that the appeal was filed through the e-portal on 10 October 2022, which was the 46 th day following the NCLT order. The Court relied on Section 12(2) of the Limitation Act, 1963 (Limitation Act), Since the certified copy was received by the Appellant on 15 th September 2022, the time taken by the court between 5th September 2022 and 15 th September 2022 to provide the certified copy should have been excluded when calculating the limitation under Section 61(2) of the IBC. As a result, the Supreme Court allowed the appeal thereby setting aside the NCLAT'S order. Here G [Appellant] can file appeal in NCLAT.
Topics: Insolvency and Bankruptcy Code (IBC)
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