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The Deputy Commissioner Of Commercial ... vs Surana Industries Ltd (In Liquidation) ...

National Company Law Appellate Tribunal7 February 2020

Ratio decidendi

The rule this decision rests on

The appeal was dismissed because the appellant gave no sufficient cause, and the Tribunal would not interfere on that basis. The ground that the appeal was filed late because of confusion about when the impugned order was communicated was held not to be a ground for condoning delay in an insolvency liquidation proceeding, given that the liquidation process is time-bound and the Liquidator must conclude proceedings within the period prescribed under the Insolvency and Bankruptcy Code, 2016.

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

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHICompany Appeal (AT) (Insolvency) No. 1525 of 2019In the matter of:

The Deputy Commissioner Commercial Taxes (Audit), Raichur ....Appellant

Vs.

Surana Industries Ltd. (In Liquidation) & Anr. ....Respondents

Present: Appellant: Mr. Sandeep Hulgul, Advocate. Respondents: Mr. Parthasarhy Bose, Mr. Mayank Kshir Sagar, Ms. Pankhuri and Mr. Mohd. Arif, Advocates.

ORDER

07.02.2020: Heard learned counsel for the parties.

In terms of impugned order, the Appellate Authority (National Company

Law Tribunal) Division Bench I Chennai declined to entertain the appeal

preferred against rejection of claim of Appellant by the Liquidator on the

ground that no specific application seeking condonation of delay was filed

beyond the prescribed period of 14 days. Learned counsel for the Appellant

submits that there was a confusion about communication of the impugned

order and that manifested in filing of appeal after delay of 7 days beyond the

prescribed period. However, that cannot be a ground for seeking condonation

as the liquidation process is a time bound process and the Liquidator has to

conclude his proceedings within one year as prescribed under Insolvency and

Bankruptcy Code, 2016.

-2-

2. In absence of sufficient cause and cogent reason, we are unable to

persuade ourselves to interfere with the impugned order. The appeal is

accordingly dismissed.

[Justice Bansi Lal Bhat] Member (Judicial)

[Justice Venugopal M.] Member (Judicial)

[V. P. Singh] Member (Technical)

am/nn

Company Appeal (AT) (Insolvency) No. 1525 of 2019

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