Angelwoods Apartment Allottees Association Vs M Lalitha and another (Supreme Court of India)
The Supreme Court considered the validity of the institution of an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016. The dispute arose from an appeal filed before the National Company Law Appellate Tribunal (NCLAT), Chennai, by the mother of a suspended director of the corporate debtor, who also claimed to be a financial creditor. She challenged an order of the National Company Law Tribunal (NCLT), Kochi Bench, dated 14.08.2024, which had approved the resolution plan submitted by Angelwoods Apartment Allottees Association.
The appeal was e-filed on 28.09.2024, the last day within the condonable period under Section 61(2) of the Code. Since the appeal was filed with delay, an application seeking condonation of a 15-day delay was submitted. The Registry of the NCLAT subsequently pointed out defects in the appeal on 04.10.2024. The defects were not cured within the prescribed period of seven days under Rule 26(2) of the NCLAT Rules, 2016. The appeal was refiled only on 10.03.2025, leading to a separate application seeking condonation of a delay of 150 days in refiling.
On 10.11.2025, the NCLAT allowed both delay condonation applications. It held that delay in refiling was a matter between the tribunal and the appellant and condoned the 150-day delay upon payment of costs of ₹50,000. It also condoned the delay in filing, observing that it was within the maximum permissible period of 45 days under the proviso to Section 61(2) of the Code.
