K.Sekar vs M.Shreedevi
- CitationCompany Appeal (AT) (CH) No. 35/2023
Ratio decidendi
The rule this decision rests on
Under the proviso to Section 421(3) of the Companies Act, 2013, an appeal to the Appellate Tribunal may be entertained after the initial forty-five day period only within a further period not exceeding forty-five days, and only if the appellant is satisfied to have been prevented by sufficient cause from filing within that period; no condonation beyond that outer limit is available. Where an appellant seeks condonation of delay, the Tribunal must be satisfied that sufficient cause existed for the whole period of delay; a party's pursuit of other remedies, such as a complaint to the Registrar of Companies or a writ petition seeking a mandamus for disposal of that complaint, which were initiated only after the limitation period had already expired, does not constitute sufficient cause for failing to file the appeal in time.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW APPELLATE TRIBUNAL AT CHENNAI (APPELLATE JURISDICTION) Company Appeal (AT) (CH) No. 35/2023 (IA Nos. 352, 353, 354, 355, 366/2023)) (Filed under Section 421 of the Companies Act, 2013) (Arising out of the Impugned Order dated 21/11/2019 in C.A./1248/2019, passed by the Hon'ble National Company Law Tribunal, Chennai Bench) In the matter of: K. Sekar & Anr. ...Appellants V M. Shreedevi & 3 Ors. ...Respondents Present : For Appellants : Mr. B. Arvind Srevatsa, Advocate.
For Respondents 1 to 3 : Mr. P.H. Arvindh Pandian, Senior Counsel For C.V. Shailandhran, Advocates.
(ORAL) ORDER
(Virtual Mode)
[Per; Justice Rakesh Kumar Jain (JM)]
19/04/2023: This Appeal is directed against the Order dated
21.11.2019, passed by the National Company Law Tribunal, Division
Bench, Chennai, by which an Appeal filed under Section 252 of the
Companies Act, 2013, (for short 'The Act'), has been allowed and the name
of the Company which was struck-off from the Register of Companies has
been restored.
Comp App (AT) (CH) No. 35/2023 Page 1 of 4
2. The present Appeal has been filed against the Order dated 21.11.2019,
on 27.02.2023 along with an Application bearing I.A. No.355/2023 for
Condonation of Delay of 1195 days in filing of the Appeal.
3. Counsel for the Appellant has submitted that firstly, the Appellant was
not a party to the Appeal which has been decided by the Ld. Tribunal and
secondly if the delay is not condoned then he will loose a case which is good
on merit.
4. We have heard Counsel for the Appellant/Applicant and perused the
record with his able assistance.
5. The present Appeal has been filed under Section 421 of the Act.
Section 421 of the Act is reproduced as hereunder:
421. (1) Any person aggrieved by an order of the Tribunal may prefer an appeal to the Appellate Tribunal.
(2) No appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent of parties.
(3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed:
Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days from the date aforesaid, but within a further period not exceeding forty-five days, if it is satisfied that the appellant was prevented by
Comp App (AT) (CH) No. 35/2023 Page 2 of 4 sufficient cause from filing the appeal within that period.
(4) On the receipt of an appeal under sub-section (1), the Appellate Tribunal shall, after giving the parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.
(5) The Appellate Tribunal shall send a copy of every order made by it to the Tribunal and the parties to appeal."
6. As per Section 421(3) every Appeal is to be filed within a period of
45 days of the receipt of the certified copy of the Impugned Order. The
proviso to Section 421(3) further provides a window of 45 days for the
purpose of condoning the delay on showing sufficient cause for not filing the
Appeal in time.
7. However, in the present case, since, the Impugned Order was passed
on 21.11.2019, the period of 45 days prescribed for filing the Appeal under
Section 421(3) expired on 05.01.2020 and further period of 45 days which is
provided in the proviso to Section 421(3) expired on 09.02.2020. The Appeal
has been filed after a long delay of 1195 days. The reason given by the
Appellant is not sufficient because the Complaint itself was made by the
Appellant to the Registrar of the Company on 28.08.2020 i.e., much much
after the period of Limitation had expired and thereafter the Appellant
engaged in filing of a Writ Petition before the Hon'ble Madras High Court
Comp App (AT) (CH) No. 35/2023 Page 3 of 4 for the purpose of issuance of a mandamus for disposal of the Complaint
filed by the Appellant dated 28.08.2020 and 07.09.2020.
8. Thus, looking from any angle, we could not persuade ourselves to take
into consideration the fact that the Appellant has been prevented by a
sufficient cause for not filing the Appeal in time even otherwise the
Limitation had expired long before on 05.01.2020 and the period of 45 days
had also expired in the month of February, 2020.
9. In view thereof, the Application for condonation of delay is hereby
dismissed.
10. Since the Application has been dismissed, therefore, the Appeal is not
found to be duly constituted and the same is also dismissed. No costs.
[Justice Rakesh Kumar Jain] Member (Judicial)
[Shreesha Merla] Member (Technical)
himanshu/md
Comp App (AT) (CH) No. 35/2023 Page 4 of 4
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