Condonation cannot be granted under Section 61 of IBC as limitation period is 30 days which is extendable to 45 days

Isolux Corsan India Engineering & Constructions Pvt. Ltd. Vs Shailesh Verma, Erstwhile Resolution Professional of South East U.P. Power Transmission Company Ltd. (NCLAT Delhi)

Conclusion: In present facts of the case, the NCLAT rejected the application praying condonation of delay as it was filed after 45 days of the passing of the Impugned Order and by virtue of Section 61 of Insolvency and Bankruptcy Code, 2016 the condonation cannot be granted.

Facts: In present facts, the application was filed by the Appellant praying for condonation of delay in filing the Appeal u/s Section 61 of the Insolvency and Bankruptcy Code, 2016 on 01^st August, 2022 challenging the Order dated 15^th June, 2022 passed by the NCLT, Prayagraj. By the Impugned Order, the Adjudicating Authority has allowed the I.A. No. 79/ALD/2022 filed by the Resolution Professional for approval of the Resolution Plan. There being delay in filing the Appeal, the said application has been filed by the Appellant seeking condonation of delay. The Appeal was filed on 47^th Day from the date of the Impugned Order.

The Appellate Tribunal after taking submissions of both sides into consideration observed that

It is an admitted case of the parties that Appeal has been filed by the Appellant against the Order dated 15^th June, 2022 on 01^st August, 2022 i.e. 47^th day. The first submission of the Appellant is that 30^th and 31^st day being holiday and Court reopened on 1^st August, 2022 only, hence filing the Appeal on 01^st August, 2022 is within time. The Limitation as prescribed under IBC, 2016 by Section 61(2) is 30 days. Under proviso, the Appellate Tribunal may allow an Appeal to be filed after said period of 30 days if it is satisfied that there is sufficient cause for not filing the Appeal but such period shall not exceed 15 days. On perusal of Section 4 of the Limitation Act, 1963, it could be said that the prescribed period for filing an Appeal when expires on a day when the Court is closed, the Appeal can be instituted when the Court reopens. Thirty-Days period for filing the present Appeal against the Order dated 15^th June, 2022 expired on 15^th July, 2022. It is not the case that Court was closed on 15^th July, 2022. According to the Appellant 46^th and 47^th Day i.e. 30^th and 31^st July were holidays. For purposes of extending the benefit of Section 4 of the Limitation Act, the Limitation has to be expired on the date when Court is closed, present is not a case where the Limitation expired on a date when the Court was closed since limitation is of 30 days and not 45 days. The power to condone the delay of 15 days is exercised by this Tribunal under proviso to Section 61(2) of the Code but it cannot be said that period for limitation is 45 days. Thus, the present is not a case where benefit of Section 4 can be extended.

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