Raj Kumar Singal vs Monitoring Committee Of Puma Realtors ...
- CitationCompany Appeal (AT) (Insolvency) No.225 of 2023
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal's power to condone delay in filing an appeal under the proviso to Section 61(2) of the Insolvency and Bankruptcy Code is limited to a further period of 15 days, and it cannot be extended beyond that limit. An order of another Bench of the Tribunal that excluded time under Section 14 of the Limitation Act, on the basis of bona fide litigation before a High Court, does not apply where the appellant does not claim the benefit of Section 14. A ground of ill health and an unintentional delay in furnishing documents, without more, does not constitute sufficient cause warranting condonation of a delay exceeding the statutory 15-day extension.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of order dated 07.09.2022 passed by the National Company Law Tribunal, Principal Bench, New Delhi in I.A. No. 3973/2020 in Company Petition (IB)-934(PB)/2018]
IN THE MATTER OF:
Raj Kumar Singal S/o Late Sh. Ram Parkash, H. No. 147, Sector 28A, Chandigarh- 160 019 Email: aarkaychd1@gmail.com Mobile: 9876291111 ...Appellant
Versus
1. Monitoring Committee of PUMA Realtors Pvt. Ltd. 8-D, Hansalaya-15, Barakhamba Road, New Delhi-110001. Email id: cs@onecity.in, Mobile No. 9873981462
2. Mr. Pawan Kumar Garg, erstwhile Resolution Professional of 25-A, J-Pocket, Sheikh Sarai-2, PUMA Realtors Private Limited, New Delhi-110017, Email id: pumarealtors.pawan@gmail.com Mobile No. 9873981462
3. Committee of Creditors of PUMA Realtors Pvt. Ltd. 8-D, Hansalaya-15, Barakhamba Road, New Delhi-110001. Email id: cs@onecity.in, Mobile No. 9873981462 ...Respondents
Present: For Appellant: Mr. Mast Ram Chechi and Mr. Subhash Saini, Company Secretaries. For Respondents: Mr. Adhish Sharma, Advocate for R-1. Mr. Abhijeet Sinha, Gazal Ghai, Mr. Anmol Singh, Mr. Kushank Sindhu, Advocates for R2.
Cont'd.../ -2-
ORDER
ASHOK BHUSHAN, J.
This is an application praying for condonation of 55 days delay in filing
the Appeal. This Appeal has been filed against the order dated 07.09.2022
passed in I.A. No. 3973/2020 in Company Petition (IB)-934(PB)/2018. This
Appeal has been e-filed in this Tribunal on 20.12.2022 and physical copy of
the Appeal was filed on 22.12.2022. There is a delay in filing the Appeal.
Application has been filed seeking condonation of delay.
2. The Company Secretary appearing for the Appellant submits that delay
in filing the Appeal be condoned. He relied on judgment of NCLAT at Chennai
in "I.A. No. 990/2022 in Company Appeal (AT) (CH) (Ins) No. 337/2022, M.
K. Resely & Ors. vs. Union Bank of India & Ors.".
3. The power to condone delay vested in this Tribunal under Section 61
(2) proviso is only 15 days. We need to consider the judgment of this Tribunal
in Chennai Bench which has been relied by the Appellant in support of his
submission.
4. In the above case, this Tribunal relying on Section 14 of the Limitation
Act has granted exclusion of the period from 25.01.2022 to 22.06.2022,
during which period the Appellant of that case had indulged in bonafide
litigious activity in preferring the Writ Petition No. 2832/2022 and Writ Appeal
I.A. No. 809 of 2023 in Company Appeal (AT) (Insolvency) No. 225 of 2023 -3-
No. 537 of 2022 before the High Court of Kerala. In paragraph 36 of the
judgment, this Tribunal has made following observations:
"36. In view of the fact, that the 'Petitioners' / "Appellants' have indulged in 'Bonafide Litigious Activity', in preferring the W.P. No.2832/2022 and WA. No.537/2022, before the Hon'ble High Court of Kerala, this Tribunal, by construing the ingredients of Section 14 of the 'Limitation Act' 1963, in a liberal manner and by applying 'Equity, permits the exclusion of period from 25.01.2022 till 22.06.2022' ('147 days'), in computing the 'Period of Limitation, and consequently disposes of the IA/990/2022, without Costs."
5. Present is not a case where the Appellant is claiming any benefit of
Section 14 of the Limitation Act. Appellant in the application has taken the
ground that he received the impugned order dated 07.09.2022 on 24.11.2022
and the same was prepared by the registry on 16.11.2022 and due to health
problems of the Appellant, the appellant could not provide the required
documents and annexures. In paragraphs 3 and 5 of the application
following has been stated:
"3. That the appellant received the impugned Order dated 07.09.2022 on 24.11.2022 as the same was prepared by the registry on 16.11.2022 on receipt of an application from the appellant on 04.11.2022 after the impugned order was uploaded online.
x....x...x
I.A. No. 809 of 2023 in Company Appeal (AT) (Insolvency) No. 225 of 2023 -4-
5. That due to health problems of the Applicant/Appellant, the appellant could not provide the required documents and annexures and thus there has been an unintentional delay of days in filing the appeal from 16.11.2022 (the date of preparation of the impugned order by the registry)."
6. The grounds as given in the application does not give any satisfactory
cause for condonation of delay, which is beyond 15 days. The judgment of
Chennai Bench of this Tribunal relied by the Appellant in M. K. Resely &
Ors. vs. Union Bank of India & Ors. has no application in the facts of the
present case. Hence, we are of the view that this application which prays of
condonation of delay of 55 days cannot be accepted. Delay Condonation
Application - I.A. No. 809 of 2023 is dismissed. Consequently, Memo of
Appeal is also rejected.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) NEW DELHI
15th March, 2023
Archana
I.A. No. 809 of 2023 in Company Appeal (AT) (Insolvency) No. 225 of 2023
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