Miss Lucy
← All judgments

Shri Kailash Shahra vs State Bank Of India

National Company Law Appellate Tribunal4 October 2024

Ratio decidendi

The rule this decision rests on

Under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, the Appellate Authority's power to condone delay in filing an appeal is confined to the 15-day period beyond the 30-day period prescribed by Section 61(1); an appeal filed after that outer limit of 45 days cannot be entertained, and the Appellate Authority has no jurisdiction to condone any delay beyond it, including by invoking Article 142 of the Constitution. Because the application for condonation of delay is not maintainable, an appeal that is not accompanied by a validly condoned delay is not duly constituted and is liable to be dismissed.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHIComp. App. (AT) (Ins) No. 1449 of 2024&I.A. No. 5116, 5279 of 2024IN THE MATTER OF:

Kailash Shahra ...Appellant(s)

Versus

State Bank of India ...Respondent(s) Present: For Appellant : Presence not marked. For Respondents : Presence not marked.

ORDER

(Hybrid Mode) 04.10.2024: IA No. 5279 of 2024

This order shall dispose of I.A. No. 5279 of 2024 filed in Company

Appeal (AT) (Ins). No. 1449 of 2024 by which the appellant has prayed for

condonation of delay of 46 days in filing the appeal.

2. It is needless to mention that the appeal has been filed under Section

61 of the IBC, 2016. The period of 30 days is prescribed under Section 61(1)

for the purpose of filing of such an appeal. However, as per Section 61(2)

proviso, another period of 15 days is given to the appellant to file the appeal

but by assigning sufficient cause to the satisfaction of the Appellate

Authority.

CA (AT) (Ins) No. 1449 of 2024 & I.A. No. 5116, 5279 of 2024 2

3. However, the Appellate Authority does not have the jurisdiction to

extend the period of limitation beyond the period of 15 days as has been

held by the Hon'ble Supreme Court in the case of 'National Spot Exchange

vs. Mr. Anil Kohli RP for Dunar Foods Limited' in SCC Online SC 716, 2021.

4. In this case the appellant has prayed for condonation of delay of 46

days. However, during the course of hearing, Counsel for the Appellant has

submitted that the impugned order was passed on 14.12.2023 and the

appeal is e-filed on 30.01.2024 therefore, there is a delay of 16 days instead

of 46 days.

5. Be that as it may, the period of one day cannot be extended by this

court by condoning the delay in view of clear mandate of Section 61 (2)

proviso and Judgment of the Hon'ble Supreme Court in the case of 'National

Spot Exchange vs. Mr. Anil Kohli RP for Dunar Foods Limited' in SCC Online

SC 716, 2021 in which it has been held that the period of limitation beyond

15 days cannot be condoned even under Article 142 of the Constitution of

India.

6. In view of the aforesaid facts and circumstances, since the appeal has

been filed beyond the period of 45 days i.e. 30+15 days, therefore, the

Tribunal does not have the jurisdiction to condone the delay. Consequently,

the application is hereby dismissed as not maintainable.

CA (AT) (Ins) No. 1449 of 2024 & I.A. No. 5116, 5279 of 2024 3

Comp. App. (AT) (Ins) No. 1449 of 2024

7. Since we have dismissed the application of condonation for delay by

an order of even date, therefore, the present appeal is not found to be duly

constituted and hence the same is hereby dismissed.

[Justice Rakesh Kumar Jain] Member (Judicial)

[Barun Mitra] Member (Technical)

[Naresh Salecha] Member (Technical) sr/rr

CA (AT) (Ins) No. 1449 of 2024 & I.A. No. 5116, 5279 of 2024

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