Damodar Valley Corporation vs Divya Jyoti Sponge Iron Pvt. Ltd. & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 1079 of 2019
Ratio decidendi
The rule this decision rests on
Under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, the thirty-day period for filing an appeal runs from the date on which the certified copy of the order is issued, and the Appellate Tribunal's power to condone delay under the proviso is limited to a further period not exceeding fifteen days beyond that thirty-day period, and is available only upon a showing of sufficient cause; an appeal filed beyond the outer limit of forty-five days is not maintainable and is barred by limitation, even if sufficient cause is shown for the delay in part of the period.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Damodar Valley Corporation ...Appellant
Vs
Divya Jyoti Sponge Iron Pvt. Ltd. & Ors. ....Respondent
Present: For Appellant: Mr. Gopal Jain, Sr. Advocate with Ms. Madhumita Bhattacharjee and Ms. Srija Choudhury, Advocates.
For Respondent: Mr. Ranjan Kr. Pandey and Mr. Sandeep Bisht and Mr. Anuj Tiwari, Advocates.
ORDER
20.01.2020: In terms of Section 420 (3) of Companies Act, 2013, the Tribunal
after passing an order is required to send a copy of every order passed under the
said section to all the parties. The Adjudicating Authority (National Company
Law Tribunal) also follows the said provision being binding. Referring to this,
learned counsel for the Appellant submitted that free copy of the order was not
supplied to the Appellant though earlier they filed review application and now
the certified copy has been supplied on 28th August, 2019, where after appeal
has been preferred on 14th October, 2019.
2. Section 61(2) of the Insolvency and Bankruptcy Code prescribes the
limitation period for preferring an appeal as follows:-
Company Appeal (AT) (Insolvency) No. 1079 of 2019 -2-
"61(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 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. In terms of the said provision, if we count from the date of issuance of
certified copy i.e. 28th August, 2019, we find that the appeal has been filed
beyond 30 days of the said order. This Appellate Tribunal is empowered to
condone delay for a period not exceeding 15 days after expiry of the aforesaid
period of 30 days, if it is satisfied that there is sufficient cause for not filing such
appeal. Even if it is accepted that there was a sufficient cause in not preferring
the appeal during period of vacation i.e. 2nd October, 2019 to 13th October, 2019,
the delay having exceeded more than 15 days beyond 30 days, we hold that this
appeal under Section 61 is not maintainable being barred by limitation.
Company Appeal (AT) (Insolvency) No. 1079 of 2019
-3-
4. However, we have noticed that the Respondent - Successful Resolution
Applicant has offered a sum of Rs.1 Crore to 'Damodar Valley Corporation' which
they are expected to pay in view of the undertaking given before this Appellate
Tribunal.
5. The appeal stands disposed of with aforesaid observations. This order will
not come in the way of 'Damodar Valley Corporation' to make further claim in
terms of the Resolution Plan.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial)
am/sk
Company Appeal (AT) (Insolvency) No. 1079 of 2019
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