NCLAT doesn't have jurisdiction to Condone Delay Exceeding 15 Days from the period of 30 Days

The Supreme Court stated that the National Company Law Appellate Tribunal (NCLAT) does not have the jurisdiction in order to condone the delay of more than 15 days from 30 days as enunciated in Section 61(2) of the Insolvency and Bankruptcy Code.

In the case of National Spot Exchange Limited vs. Anil Kohli CA 6187 OF 2019 [LL 2021 SC 453], an appeal was filed before the NCLAT with a further delay of 44 days which was beyond a total period of 45 days. Mr. Maninder Singh, senior counsel appearing on behalf of the appellant, National Spot Exchange Limited, has argued that by holding that the Appellate Tribunal lacks jurisdiction to condone a delay of more than 15 days, the learned Appellate Tribunal may be justified in dismissing the appeal on the grounds of limitation. it is urged to exercise the powers conferred on thereon by Article 142 of the Constitution.

Mr. Abhishek, an Advocate representing the IRP for the corporate debtor, opposed the appeal vehemently. It was argued that Section 61(2) of the Code gives the Appellate Tribunal the power to condone the delay in the appeal. It was further argued that if there is sufficient cause, the Appellate Tribunal can condone a delay of only 15 days over 30 days time period. Hence, Appellate Tribunal lacks jurisdiction to condone the delay of 15 days, over the period of 30 days.

The apex Court observed that as per Section 61(2) of the IB Code, the appeal was required to be made within a period of thirty days. Therefore, the limitation period prescribed is 30 days. However, according to the proviso to Section 61(2) of the Code, the Appellate Tribunal may allow an appeal filed after the expiry of the said period of 30 days if there is a sufficient cause for not filing the appeal, but such period not exceed 15 days. Therefore, the Appellate Tribunal has no jurisdiction in order to condone the delay exceeding 15 days from the time span of 30 days, as per the above-mentioned section.

The court further rejected the request to condone the delay in exercise of powers under Article 142 of the Constitution of India due to the involvement of an enormous amount and also the appellant in the said case was a public body.

Author:

Tejaswini Lala
Hyderabad
BBA-LLB student of Symbiosis Law School Hyderabad.