NCLAT judgement on exclusion of the time to obtain certified true copy from the limitation period

 

Time to obtain certified copy of the order/judgment will be excluded from limitation period: NCLAT

 The National Company Law Appellate Tribunal (NCLAT) Principal Bench comprising of Justice Ashok Bhushan and Mr. Barun Mitra in Chhote Lal Gupta, Proprietor, Tirupati Enterprises Versus Jai Balaji Jyoti Steels Ltd. (Company Appeal (AT) (Insolvency) No. 955 of 2022) vide Order dated 10.08.2022 ruled on the issue that the time taken for preparation of the certified copy of the order/judgment will be excluded for computation of limitation under Section 61 of the Insolvency and Bankruptcy Code, 2016(“Code”).

Background of the case:

Appeal was filed against the Order dated 13th May, 2022 passed by the National Company Law Tribunal, Cuttack Bench, Cuttack by which the Application of the Appellant was dismissed. The Order was passed on 13th May, 2022, the certified copy was applied on 08th June, 2022 which was made available on 09th June, 2022 and the appeal was filed on 08th July, 2022. The main issue is whether the Appeal is filed in time or not.

Contentions of the Appellant

The Appellant contented that the Order was passed on 13th May, 2022, certified copy was applied on 08th June, 2022 i.e. within 30 days from the date of the Impugned Order which was made available on 09th June, 2022 hence thereafter the Appellant will have 30 days’ time to file this Appeal and having been filed on 08th July, 2022 is within time. The Appellant also relied upon the Judgments of Hon’ble Supreme Court in V. Nagarajan Vs. S.K.S. Ispat and Power Ltd (2022) 2 SCC 244 and National Spot Exchange Limited Vs. Anil Kohli, RP for Dunar Foods Limited”, (2021) SCC OnLine SC 716.

Held

It was held that 13th May, 2022 was the date on which Order was passed by the Adjudicating Authority, Appellant had time to file the Appeal till 12th June, 2022 and further he was entitled for extension of two days limitation i.e. up to 14th June, 2022 and as the appeal was filed on 08th July, 2022, the appeal is time barred. As per Section 61 of the Code, the Tribunal has power to condone the delay of only 15 days and the delay in the present Appeal is more than 15 days. However, it was held that the period for which certified copy was under preparation will be excluded in computing the limitation.

This Article has been Compiled by Ayushi Misra (Senior Associate) and Arun Gupta (Partner). 

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