Sturdy Industries Limited Vs Surya Irrigation Private Limited (NCLAT Delhi)
Summary: The National Company Law Appellate Tribunal, Delhi Bench, dismissed the appeal filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 against the order of the NCLT, Jaipur Bench, which had dismissed the Appellant’s Section 9 petition seeking initiation of CIRP against the Respondent. The NCLT’s original order dated 06.11.2024 was subsequently rectified on 12.02.2025 only to correct a clerical error concerning the date of pronouncement.
The Appellant contended that limitation for the appeal should run from the rectified order and that balance confirmations extended limitation under Section 18 of the Limitation Act, 1963. The Respondent contended that the appeal was delayed by 125 days and that rectification did not alter the substantive findings.
NCLAT held that Section 61(2) permits an appeal within 30 days, extendable by a further 15 days, and that the limitation period commenced from the original pronouncement dated 06.11.2024. The subsequent clerical rectification did not restart limitation. The Tribunal also held that Section 60(6) of the Code, concerning exclusion of the moratorium period for suits or applications, did not apply to an appeal under Section 61.
On merits, NCLAT found that the Section 9 petition filed on 23.09.2021 was beyond the three-year period under Article 137 of the Limitation Act, the balance confirmations did not constitute valid acknowledgment under Section 18, and correspondence predating the demand notice disclosed a genuine pre-existing dispute. The appeal was accordingly dismissed as barred by limitation and, in any event, on merits, and the NCLT orders were upheld.
