Tata Steel Ltd Vs Raj Kumar Banerjee & Ors. (Supreme Court of India)
Supreme Court held that NCLAT has no power to condone delay beyond prescribed period of 45 days to entertain appeal regardless of the reason for delay. Accordingly, order passed by NCLAT condoning delay is ultra vires and liable to be quashed.
Facts- The appellant is the successful resolution applicant for Rohit Ferro-Tech Limited (Corporate Debtor) having its resolution plan approved by the Committee of Creditors and subsequently by the National Company Law Tribunal, Kolkata, by order dated 07.04.2022. Respondent No.1 is an erstwhile minority shareholder of the Corporate Debtor.
Respondent No.1 preferred an appeal u/s. 61 of the Insolvency and Bankruptcy Code, 2016 to set aside the order dated 07.04.2022 passed by the Adjudicating Authority and direct the Resolution Professional to scrutinise the resolution plan proposed by the appellant in accordance with Section 30(2) IBC. Along with the appeal, he also filed an interlocutory application praying for condonation of delay of 15 days in filing the same. By the order impugned herein, the NCLAT condoned the delay and allowed the said application. Aggrieved by the same, the appellant is before us with the present appeal.
Conclusion- Held that once the prescribed and condonable periods (i.e., 30 + 15 days) expire, the NCLAT has no jurisdiction to entertain appeals, regardless of the reason for the delay. Thus, the NCLAT has no power to condone delay beyond the period stipulated under the statute. Accordingly, the second issue is answered by us. In view of the foregoing, the order passed by the NCLAT condoning the delay in filing the appeal, is ultra vires and liable to be set aside.
