NCLAT Clarifies Computation Of Limitation Under Section 61 Of IBC When Last Day Falls On A Holiday

The National Company Law Appellate Tribunal (NCLAT) bench comprising Justice Ashok Bhusan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that for computing the 30 days' period under Section 61 of the Insolvency and Bankruptcy Code (IBC), if the last day expires on a day when the office of the NCLAT is closed, that day and any succeeding day on which the NCLAT remains closed shall also be excluded. Brief Facts The Appellant is a vegetable vendor. He filed the application praying for condonation of delay of 15 days in filing the Appeal against the order dated 01.10.2024, passed by the National Company Law Tribunal (NCLT), Ahmedabad. He claimed that he became aware of the order only a week after its pronouncement. Due to his lack of legal knowledge and ill health, he approached his counsel on 10.11.2024, and the Appeal was subsequently prepared and e-filed on 15.11.2024. Observations The tribunal noted that jurisdiction to condone the delay vested in the Tribunal was only 15 days as per Section 61(2) proviso of the IBC. As per Rule 3 of the NCLAT Rules, 2016, the day from which the said period is reckoned shall be excluded. Thus, 01.10.2024 was excluded. The Tribunal observed that for computing the 30 days, if the last day expires on a day when the office of the Tribunal is closed, that day and any succeeding day on which the NCLAT remains closed shall also be excluded. After excluding 01.10.2024 from computation, limitation of 30 days was expiring on 31.10.2024. From 30.10.2024 to 03.11.2024, it was holidays both for the Court as well as the Registry (Diwali Holidays). 03.11.2024 being a holiday for the office, the last day of limitation for filing the appeal was 04.11.2024 i.e. on the re-opening day. The appeal was filed on 15.11.2024. Thus, the delay in filing the appeal was within the condonable period, being only 11 days in filing the appeal. The Tribunal noted that as per the law laid down by the Supreme Court in V. Nagarajan vs. SKS Ispat and Power Limited and Ors. (2022), limitation for filing the appeal commences on the day when the order is pronounced. The question as to when the appellant came to know about the order was inconsequential. The Tribunal allowed the condonation application and listed the appeal for admission on 10.03.2024. Case Title: Atul Babulal Prajapati & Anr. (Suspended Director and Promoter of WSH Pvt. Ltd.) vs. Suhas Dinkar Bhattbhatt & Ors Case Number: I.A. No.8554 of 2024 IN Company Appeal (AT) (Insolvency) No. 2273 of 2024 For Appellants: Ms. Honey Satpal, Mr. Nipun Singhvi, Ms. Mayur Jugtawat, Advocates. For Respondents: Mr. Mandeep Skngh Salyon, Advocate for R-1. Date of Order: 06.03.2025Click Here To Read/Download The Order

NCLAT Clarifies Computation Of Limitation Under Section 61 Of IBC When Last Day Falls On A Holiday

Tazeen Ahmed

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NCLAT Clarifies Computation Of Limitation Under Section 61 Of IBC When Last Day Falls On A Holiday

Tazeen Ahmed

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INR 1099+GST

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This is a premium content
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