Limitation is to be counted from date of preparation of certified copy & not from date of delivery: NCLAT

Case Details: Wadhwa Rubber v. Bandex Packaging (P.) Ltd. - [2022] 142 taxmann.com 169 (NCLAT-New Delhi)

Judiciary and Counsel Details

• • Rakesh Kumar Jain, Judicial Member & Dr Alok Srivastava, Technical Member
  • Mohit Aggarwal, Adv. for the Appellant.

Facts of the Case

In the instant case, an appeal was filed against the order dated 08.01.2020 passed by the Adjudicating Authority (NCLT) whereby an application filed u/s 9 of the IBC has been dismissed.

The appellant had applied for the certified copy of the order dated 08.01.2020 on 10.02.2021 i.e. almost after a year. The copy of the order was prepared on 17.02.2021. However, it was taken by the appellant on 06.04.2021 and then the appeal was filed on 04.08.2021.

During the course of the hearing, the appellant was asked why the appeal was not filed within a period of 30 days from the date of the order i.e 08.01.2020. In this regard, he submitted that the copy which is to be given free of cost was not supplied and therefore, the certified copy was applied on 10.02.2021 and when it was delivered, the appeal was filed which was within the period of limitation.

The Adjudicating Authority (NCLT) dismissed the application filed u/s 9 of the IBC on 08.01.2020. Thereafter, an appeal was made to the National Company Law Appellate Tribunal (NCLAT) against the order passed by the Adjudicating Authority (NCLT).

NCLAT Held

The NCLAT observed that the certified copy appeared to have been applied on 10.02.2021 and was prepared on 17.02.2021, however, the appellant spent almost two months even in taking the certified copy from the Tribunal. It is well settled that the limitation is to be counted not from the date of delivery of the certified copy but from the date of preparation of the certified copy.

The NCLAT, further observed that it was prepared on 17.02.2021 and if the limitation was to be counted from 17.02.2021 the same had expired much earlier than the date of filing of the appeal on 04.08.2021.

The NCLAT held that the appeal filed by the appellant was without limitation provided u/s 61 of the Code of a period of 30 days and section 61(2) proviso, an additional period of 15 days for which discretion is granted to the Appellate Authority to condone only on being satisfied that there is a sufficient cause for condonation of delay.

Accordingly, the appeal was to be dismissed.