147 Days delay in filing Appeal was condoned on basis of equity

M.K. Resely Vs Union Bank of India (NCLAT Chennai)

Conclusion: Delay of 147 days in filing of appeal before NCLAT was condoned upon equity. The delay had occurred as the Appellant had challenged the Impugned Order before the High Court instead of NCLAT but on a bona fide basis and the time taken by the High Court in deciding the matter had been excluded by the NCLAT in computation of limitation.

Held: In the instant case, the Liquidator of M/s. Raihan Healthcare Private Limited (“Corporate Debtor”) had filed an application before the Adjudicating Authority seeking to add the personal properties of Mr. M.K. Resely and others (“Appellants”), into the Liquidation Estate of the Corporate Debtor. The Adjudicating Authority vide an order dated 21.01.2022 allowed the prayer of the Liquidator. Thereafter, the Appellants challenged the Impugned Order before High Court of Kerala on 26.01.2022, which was dismissed vide an order dated 22.04.2022. On 25.04.2022, the Appellants filed a writ appeal before the High Court of Kerala against the Order of dismissal dated 22.04.2022. The Writ Appeal was dismissed on 22.06.2022. Thereafter, the Appellants filed an appeal against the Impugned Order before the NCLAT on 06.07.2022. The time taken to file the appeal before NCLAT was 14 days i.e. from 22.06.2022 to 06.07.2022. Along with the appeal, the Appellants filed an Interim Application before the NCLAT seeking exclusion of the period from 25.01.2022 till 22.06.2022 (147 Days) in computing the period of Limitation of the Appeal. It was held that ‘on hand’, the ‘Appellants’, pray before this ‘Tribunal’, that the period from `25.01.2022 to 22.06.2022’, was liable to be excluded and that the ‘Hon’ble High Court of Kerala’ in ‘W.A. No.537/2022’, had permitted the ‘Appellants’, to file an ‘Appeal’ within ‘Two Weeks’, and that the `copy of the said Judgment’, in ‘Writ Appeal’, was received on 29.06.2022 and that the present Comp. App. (AT) (CH) (Ins) No.337/2022, was filed before this ‘Tribunal’, on 14.07.2022. In fact, a mere ‘running of the eye’, ‘contents’ of the ‘E-Portal’ received by this ‘Tribunal’ exhibited that ‘E-filing’ of the ‘instant Comp. App. (AT) (CH) (Ins) No.337/2022’, was made on 06-07­2022 22:07:946.  The High Court of Kerala had extended the interim order for a period of two weeks from 22.06.2022, enabling the Appellants to prefer an Appeal before the Appellate Tribunal. In view of the fact, that the Appellants had indulged in Bonafide Litigious Activity  before the Hon’ble High Court of Kerala, this Tribunal, by construing the ingredients of Section 14 of the Limitation Act 1963, in a liberal manner and by applying Equity, permitted the exclusion of period from `25.01.2022 till 22.06.2022 (147 days), in computing the Period of Limitation, and consequently disposed of the IA/990/2022, without Costs. The Bench excluded the period from 25.01.2022 till 22.06.2022 in computation of limitation period in view of equity. In view of the fact, that the ‘Petitioners’ / ‘Appellants’ had indulged in ‘Bonafide Litigious Activity’, in preferring the W.P. No.2832/2022 and W.A. No.537/2022, before the Hon’ble High Court of Kerala, this ‘Tribunal’, by construing the ingredients of Section 14 of the ‘Limitation Act’ 1963, in a liberal manner and by applying ‘Equity’, permitted the exclusion of period from `25.01.2022 till 22.06.2022’ (‘147 days’), in computing the ‘Period of Limitation’, and consequently `disposed of’ the IA/990/2022, without Costs.

FULL TEXT OF THE NCLAT JUDGMENT/ORDER

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