Case Law Details
Sanjay Pandurang Kalate Vs Vistra ITCL (India) Limited and Others (Supreme Court of India)
Supreme Court held that period of limitation provided under section 61(2) of the IBC began from the date of upload of order in case where date of upload of order and date of pronouncement is not on same date.
Facts- Respondent 1, Vistra ITCL (India) Limited filed an application u/s. 7 of the IBC seeking the initiation of the Corporate Insolvency Resolution Process against Evirant Developers Private Limited, the Corporate. The appellant is a former director of the Corporate Debtor, who alleges that the Section 7 application filed by respondent 1 is based on collusion with the various respondents, including respondent 2 and respondent 3, who are former directors of the Corporate Debtor. The appellant filed an interlocutory application before the NCLT alleging inter alia that the reply to the Section 7 application on behalf of the Corporate Debtor was filed by respondent 2 without authorization of the Board of Directors or intimation to the appellant.
On 17 May 2023, NCLT heard the application filed by the From the submissions and on a specific query of the Court, it appears that it is not in dispute between the counsel for the appellant and the respondent that on 17 May 2023, the order of the NCLT was not pronounced and no substantive order was passed. The order was uploaded by the Registry of the NCLT on 30 May 2023 though the order carries the date of 17 May 2023. By the order, the NCLT dismissed the appellant’s application on the grounds that the application was filed without authorization from the Board of Directors of the Corporate Debtor and was prima facie frivolous, to delay the proceedings in the Section 7 application. The appellant applied for a certified copy on 30 May 2023, which was received on 1 June 2023. The appeal against the order was e-filed before the NCLAT on 10 July 2023. The appellant filed an application for condonation of delay along with the appeal.
Separately, it may be noted that on 19 May 2023, the NCLT allowed respondent 1’s Section 7 application and initiated CIRP against the Corporate Debtor. The appellant’s appeal against the order has been dismissed by the NCLAT on 05 October 2023.
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