Plea for Condonation of Delay in Filing Appeal Rejected as Appellant Failed to Appear Before AA Despite Serving of Notice | Appellate Tribunal
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- Last Updated on 27 June, 2024
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Case Details: Sciknow Techno Solutions Ltd. v. Dinesh Kumar Gupta (Liquidator of Jarvis Infratech (P.) Ltd.) - [2024] 163 taxmann.com 702 (NCLAT-New Delhi)
Judiciary and Counsel Details
- Ashok Bhushan, Chairperson & Barun Mitra, Technical Member
- Gaurav Mitra, Ms Smiti Verma & Ms Beleena Biju, Advocates for the Appellant.
- Govind Bhardwaj, Ms Mumal Jain, Pradeep Shukla, Vivek Sinha, Vivek Malik & Shubham Barara, Advocates for the Respondent.
Facts of the Case
In the instant case, a liquidation order was issued against the corporate debtor, and a respondent (i.e., the liquidator) was appointed. The liquidator filed an application under section 43 of the IBC before the NCLT seeking directions regarding certain financial transactions categorized as preferential, executed by corporate debtor’s promoters, directors, and management.
Despite being served notice, the appellant (i.e. a suspended director) did not appear before the NCLT, leading to ex-parte proceedings. The NCLT allowed the liquidator’s application and directed the reversal of transactions favouring the corporate debtor.
Thereafter, the appellant filed an instant appeal and sought to condone the delay in filing an instant appeal, claiming that they received the order on 08.01.2023 via a letter dated 29.12.2022 and filed an appeal on 22.02.2023. Thus, the delay was only 14 days beyond the limitation period and should be excused.
It was noted that the appellant did not appear before the NCLT despite service of notice. Hence, it would be treated as served, and the appellant could not say that the order was ex-parte. The limitation to file an appeal would only begin when he had knowledge of the order.
NCLAT Held
The NCLAT held that the ground taken in the delay condonation application that the appellant came to know about the order when he received the letter from the Liquidator on 08.01.2023 was unfounded and not supported by any material. In contrast, the Liquidator, in its reply, had brought material on record that indicated that the Liquidator sent the order on 04.01.2023 by email to the appellant.
Further, the NCLAT held that since there was no ground to allow the delay condonation application, the delay condonation application was to be dismissed.
List of Cases Reviewed
- Noble Co-operative Bank Ltd. v. Jarvis Infratech (P.) Ltd. [2024] 163 taxmann.com 701 (NCLT -New Delhi) [para 15] affirmed [See Annex].
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