State Bank Of India vs Mbl Infrastructures Ltd. & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 336 of 2018
Ratio decidendi
The rule this decision rests on
Section 61(2) of the Insolvency and Bankruptcy Code, 2016 prescribes a period of 30 days for filing an appeal against an order of the Adjudicating Authority, and the proviso empowers the Appellate Tribunal to condone a further delay of not more than 15 days upon being satisfied of sufficient cause; the outer limit of 45 days is absolute and cannot be extended on any ground. An appeal filed beyond the 45-day maximum under Section 61 is barred by limitation and is not maintainable, and the Tribunal must dismiss it on that footing. The intervening court vacations do not constitute a ground for extending the statutory period, since the Appellate Tribunal's Registry functions and a Vacation Bench is available throughout the vacation period.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
State Bank of India ...Appellant
Vs
MBL Infrastructures Ltd. & Ors. ....Respondents
Present:
For Appellant: Mr. Sanjay Kapur, Ms. Megha Karnwal and Ms. Rishika Saha, Advocates.
For Respondents: Mr. Abhinav Vaishisht, Sr. Advocate with Mr. Kunal Kohli, Advocate for R-1. Ms. Anusuya Salwan and Ms. Nikita Salwan, Advocates for R-2.
ORDER
03.07.2018: Section 61(2) of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') prescribes period of 30 days for filing of an appeal by a person aggrieved by the order of the Adjudicating Authority. The proviso to the sub-section provides that the National Company Law Appellate Tribunal may allow an appeal to be filed after the expiry of said period of 30 days if it is satisfied that there was sufficient cause for not filing the appeal but such period shall not exceed 15 days. From a plain reading of the provision it is manifestly clear that the appeal has to be preferred within 30 days but delay not exceeding 15 days can be condoned in preferring the appeal provided the appellant is able to satisfy this Appellant Tribunal that there was sufficient cause for not filing the appeal within the prescribed period of 30 days. This provision unambiguously provides a maximum time frame of 45 days for filing of appeal, which is not further extendable on any ground whatsoever.
-2- 2. Admittedly, the instant appeal has been filed under Section 61 of I&B Code well beyond the maximum prescribed period of 45 days. Same being hit by the limitation clause under the said provision is not maintainable. Submission of learned counsel for the Appellant that the appeal could not be preferred within extended period of limitation due to the intervention of vacations spanning the month of June has no merit as the Registry of this Appellate Tribunal was functioning throughout the vacation period and Vacation Bench was available.
3. The appeal is accordingly dismissed as barred by limitation.
[Justice Bansi Lal Bhat] Member (Judicial) am/uk
Company Appeal (AT) (Insolvency) No. 336 of 2018
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