Mangalore Refinery & Petrochemicals ... vs Tecpro System Limited
- CitationComp. App. (AT) (Ins.) No. 597 of 2023
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal's power to condone delay in filing an appeal under the Insolvency and Bankruptcy Code is confined by the proviso to Section 61(2) to a further period of 15 days beyond the statutory limit; where the delay exceeds that period, the Tribunal has no jurisdiction to condone it, and the appeal must be rejected. Questions of fraud and limitation raised by a party against an order granting leave to the liquidator to institute proceedings are matters to be determined in the appropriate suit or legal proceeding subsequently instituted, and are not to be entertained in an appeal that is itself time-barred.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
M/s. Mangalore Refinery and Petrochemicals Ltd. ....Appellant Vs. Tecpro Systems Ltd. ...Respondent For Appellant: Mr. MKS Menon, Mr. Shashak Menon, Mr. Amit Verma, Mr. Avi levna, Advocates. For Respondent:
ORDER
21.08.2023: I.A. No.1986 of 2023:- This Application has been filed for
condonation of delay of 44 days. This Appeal has been filed against the order
dated 23.12.2022 passed by the Adjudicating Authority by which in IA No.
6176 of 2022 filed by the Liquidator, leave was granted to institute suit or legal
proceedings against 'Reliance Infrastructure Limited'.
2. Learned Counsel for the Appellant submits that the Appellant being not
aware of the order he could not file Appeal during the period of limitation.
Learned Counsel for the Appellant submits that fraud was committed on Court
hence, under Section 17 of the Limitation Act, limitation will not commence
till fraud is detected. He further relies on Section 3 of the Limitation Act and
submits that Court ought to have examined the question of limitation even if
there is no defense raised.
3. We have considered the submissions of the Learned Counsel for the
Appellant and perused the record.
2
4. The submissions which are sought to be raised by the Appellant on the
ground of fraud and limitation are the issues which had to be considered in
an appropriate suit or legal proceeding initiated by the liquidator. It is always
open for the Appellant to raise the question of fraud and limitation in an
appropriate proceeding. We, however, of the view that there is no ground to
condone the delay. Our jurisdiction to condone delay is only 15 days as per
Section 61(2) proviso, hence, we are unable to condone the delay in filing the
Appeal which is 44 days after expiry of limitation.
5. Delay condonation application is dismissed. Memo of Appeal is Rejected.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Ajai Das Mehrotra] Member (Technical)
Anjali/nn
Comp. App. (AT) (Ins.) No. 597 of 2023
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