Income Tax Department vs M/S Ilc Industries Ltd

NATIONAL COMPANY LAW APPELLATE TRIBUNAL AT CHENNAI (APPELLATE JURISDICTION) TA (AT) No.194/2021 (Company Appeal (AT) (Ins) No.469/2021 (IA Nos.1205, 1206 & 1207/2021) In the matter of: Income Tax Department Through Deputy Commissioner of Income Tax ... Appellant V ILC Industries Ltd. & 2 Ors. ...Respondents Present : For Appellant : Mr. J Narayanaswamy, Advocate For Respondents : Mr. Ankur S. Kulkarni, Advocate for R1 ORDER

(Hybrid Mode) 27.06.2024:

The Appellant herein has preferred this Appeal under Section 61(1) of I &

B Code, 2016, wherein it puts a challenge to the Impugned Order of 13.01.2020,

as it has been passed by the NCLT, Bangalore Bench in IA No. 12/2020, as

preferred in CP(IB) No.155/BB/2018. The Company Appeal is accompanied with

a Delay Condonation Application being IA No. 1207/2020. As per the

explanation given for the purposes of seeking a condonation of delay, the

Appellant has submitted that he was not a party to the proceedings and hence he

could not get knowledge of the order and the observations which were made

therein which were affecting the Appellant. Be that as it may, in para 3 & 4 of the

Condonation Delay Application, it is an admitted case of the Appellant that the

Appellant got the knowledge of the order when he received the order on

13.02.2020. If that is to be accepted as to be the date of knowledge of the order,

TA (AT) No.194/2021 (Comp App (AT) (Ins) No.469/2021) Page 1 of 4 then according to the law as settled, the Appellant was supposed to file his Appeal

within 30 days period from that date and to at the minimum apply for the certified

copy of the order well within the 30 days period starting from 13.02.2020.

Admittedly the same was not done and the Appeal was filed on 28.06.2021 along

with the Delay Condonation Application and an exemption application being IA

No. 1205/2020, seeking exemption to file a certified copy of the Judgement. The

Appellant seeks condonation of delay stating that as per Section 61(2) of I & B

Code, he was to file his Appeal by 14.03.2020, that Covid-19 Pandemic disrupted

all activities period of limitation in all proceedings stood extended with effect

from 15.03.2024 by an order of Hon'ble Supreme Court, he filed his Appeal on

28.06.2021 well within this extended limitation period, there is only one day

delay from 14.03.2020 to 15.03.2020 and hence such delay may be condoned but

it is seen that till date, the certified copy has not supplied by the Appellant. In

view of the fact that even from the date of knowledge of the order, the Appellant

has not applied for the certified copy of the order. In view of the same, he cannot

get the benefit of the extension of limitation period further, as argued by the

Learned Counsel for the Respondent in his objection to the Delay Condonation

Application where he has contended that in the Judgement rendered by the

Hon'ble Apex Court in Sagufa Ahmed & Ors. Vs. Upper Assam Polywood

Products Private Limited & Ors. as reported in 2021 Volume II SCC Page 317.,

it has been made clear that the extension of timeline on account of Covid-19

Pandemic will not be available to those cases where the 30-day period has already

TA (AT) No.194/2021 (Comp App (AT) (Ins) No.469/2021) Page 2 of 4 expired. Particularly, he has drawn the attention of this Tribunal to the contents

of Para 17 which is extracted hereunder:

"17. But we do not think that the appellants can take refuge under the above order in Cognizance for Extension of Limitation, In re³. What was extended by the above order3 of this Court was only "the period of limitation" and not the period up to which delay can be condoned in exercise of discretion conferred by the statute. The above order3 passed by this Court was intended to benefit vigilant litigants who were prevented due to the pandemic and the lockdown, from initiating proceedings within the period of limitation prescribed by general or special law. It is needless to point out that the law of limitation finds its root in two Latin maxims, one of which is vigilantibus et non dormientibus jura subveniunt which means that the law will assist only those who are vigilant about their rights and not those who sleep over them."

The underlying principle laid down by the Hon'ble Apex Court in its Suo-

moto Judgement is that the benefit of extension of limitation period due to the

prevalent Covid-19 situation would not be extended in those cases where the delay

could be condoned in the exercise of discretion conferred by the statute that is, in

the instant case under proviso of Section 61(2) of I & B Code, 2016. Hence this

grant of extension of period of limitation by virtue of Suo-moto Judgement of the

Hon'ble Apex Court due to Covid-19 situation will not come into play in the

instant ease as the Appellant himself has not satisfied, the prescription of

limitation as provided under Section 61(1) of I & B Code, 2016, for preferring of

an Appeal and also admittedly did not apply for the certified copy of the impugned

TA (AT) No.194/2021 (Comp App (AT) (Ins) No.469/2021) Page 3 of 4 Judgement within a period of 30 days, even from the date of knowledge, if it is

determined to be date from which limitation period will be counted. In view of

the aforesaid, since the Appeal has not been preferred within the prescribed period

of limitation as statutorily described, The Company Appeal would stand

dismissed being barred by limitation.

[Justice Sharad Kumar Sharma] Member (Judicial)

[Jatindranath Swain] Member (Technical) RO/TM

TA (AT) No.194/2021 (Comp App (AT) (Ins) No.469/2021) Page 4 of 4