New Boilers Engineering vs Idbi Bank Limited
- CitationCompany Appeal (AT) (Insolvency) No. 479 of 2021
Ratio decidendi
The rule this decision rests on
An appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 must be filed within the prescribed period of one month, with the Appellate Tribunal empowered to condone a delay of no more than a further 15 days; an appeal filed well beyond that outer limit, without the appellant disclosing the date of its knowledge of the impugned order to justify extension, is time-barred and cannot be entertained. Where a claim has been rejected by the Resolution Professional during the Corporate Insolvency Resolution Process and no appeal is filed against that rejection at the time, a belated challenge to the approved resolution plan on the strength of that rejected claim cannot succeed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
New Boilers Engineering A partnership firm situated at Engineering Block - 499, Kallar P.O., Idukki District, Represented by Reghunath TA, S/o Sreedharan Pillai, Kallar P.O. Idukki District Kerala State - 685 552. ...Appellant
Versus
IDBI Bank Limited 2nd Floor, A, B & C Wings, Mittal Court, Nariman Point, Mumbai. Pin - 400 021. ...Respondent No. 1
EPC Construction India Limited, (Formerly M/s Essar Projects India Limited) Represented by its Auth. Signatory, KRA-46A, Opposite Thiruvankulam Higher Secondary School, Kadungamangalam, Ernakulam District. Kerala - 682 305. ...Respondent No. 2
Bharat Petroleum Corporation Limited (BPCL) Kochi, Represented by its General Manager, Ambalamugal P.O., Ernakulam District, Kerala - 682 302. ...Respondent No. 3
For Appellant: Mr. Abraham Mathews, Advocate. For Respondents:
Cont'd ...../ -2-
ORDER
(Virtual Mode)
13.07.2021: This Appeal has been filed by the Appellant claiming to be
'Operational Creditor' against impugned order dated 25th November, 2019 passed
by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench
in M.A.315 of 2019 in CP No.1832/I&BC/MB/MAH/2017 vide which order
Resolution Plan has been approved. The impugned order shows that 'IDBI Bank
Ltd.' had filed a petition under Section 7 against the Corporate Debtor - 'EPC
Constructions India Ltd.' which was admitted on 29th December, 2017. In the
course of Corporate Insolvency Resolution Process (CIRP), Resolution Plan of
'Royale Partners Investment Fund Ltd.' (RPIFL) was received which has been
approved by the impugned order dated 25th November, 2019.
2. The present appeal has been filed on 9th April, 2021. The Appeal should have
been filed within the period of one month as per Section 61 of the Insolvency and
Bankruptcy Code, 2016 ('IBC' for short). This Tribunal can condone period of 15
days beyond period of Appeal under Section 61(2) of the IBC. Counsel for the
Appellant states that although the lockdown started somewhere on 23rd March,
2020 still reason given is that the Appellant was not aware of passing of such order.
The Delay Condonation Application does not reveal date of knowledge. We find
that the appeal is time barred.
3. Even if the Appeal was to be entertained to look into the Appellant's claim
that the Appellant had filed claim with the Resolution Professional, no document
Company Appeal (AT) (Insolvency) No. 479 of 2021 -3-
is filed to show what claim was filed. There is only Annexure - A/7 which points
out an entry at Sl. No. 191 which shows that the amount claimed was rejected.
The Counsel for the Appellant is unable to show as to what was the date of this
document. The document does not bear any signature and no date of document is
there. It is admitted position that in the Resolution Plan which is approved the
Appellant was not included. When there was no appeal filed during the course of
CIRP when the claim was rejected, this present belated effort of filing this Appeal
cannot succeed.
4. There is no substance in the Appeal and we decline to admit the Appeal. The
Appeal is disposed of as not admitted.
[Justice A.I.S. Cheema] The Officiating Chairperson
[Dr. Alok Srivastava] Member (Technical) Archana/gc.
Company Appeal (AT) (Insolvency) No. 479 of 2021
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free