Registry Remained Open,Summer Vacation Not Excluded From Computation Of Limitation: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), while adjudicating an appeal filed in M K Overseas Export Pvt. Ltd. v Sapan Mohan Garg, has held that the duration of summer vacation of NCLAT cannot be excluded from computation of limitation period, since filing facility was not discontinued by the Registry and urgent matters were also being heard twice a week by the NCLAT. “In so far as the submission of the applicant that there was summer vacation, therefore, appeal could not be filed. There is already notification issued by the Registry that filing of the appeal is not precluded during summer vacation and Court also use to convene twice in a week to consider urgent matters. Therefore that submission has also no legs to stand.” Background Facts M K Overseas Export Pvt. Ltd. (“Appellant”) filed an appeal before the NCLAT against an order passed by NCLT dated 27.04.2023. The Appellant contended that it became aware of the order on 12.05.2023, hence limitation would be computed from the said date. The appeal was e-filed on 24.06.2023 whereas the maximum limitation period of 45 days as per Section 61(2) of IBC ended on 11.06.2023. Alongwith the appeal an application for condonation of delay of 29 days was filed by the Appellant. It was argued that the delay in filing was due to commencement of summer vacations in between. NCLAT Verdict The Bench noted that as per the Supreme Court’s decision in V Nagarajan Vs SKS Ispat and Power Ltd.& Ors., Civil Appeal No. 3327 of 2020, the period of limitation shall commence from the date of pronouncement of order. It was observed that filing was not discontinued during summer vacations and the Registry had also issued a notification in this regard. The NCLAT bench was also being convened twice a week for urgent matters. “In so far as the submission of the applicant that there was summer vacation, therefore, appeal could not be filed. There is already notification issued by the Registry that filing of the appeal is not precluded during summer vacation and Court also use to convene twice in a week to consider urgent matters. Therefore that submission has also no legs to stand.” The Bench held that as per Section 61(2) of IBC only a delay of 15 days in filing of appeal can be condoned. Accordingly, the Bench declined to condone the delay of 29 days which occurred after expiry of limitation period of 30 days. “The appeal having been filed beyond 15 days after expiry of limitation. Our jurisdiction to condone delay is limited to only 15 days as per Section 61(2) proviso. We are unable to condone 29 days delay in filing the Appeal. Delay Condonation Application is dismissed. In result, Memo of Appeal is rejected.” The appeal has been dismissed. Case title: M K Overseas Export Pvt. Ltd. v Sapan Mohan Garg Case No.: Company Appeal (AT) (Ins.) No.1040 of 2023 Counsel For Appellant: Mr. Kumar Mihir, Mr. Rakesh Kumar, Mr. Ankit Sharma, Advocates. Click Here To Read/DownloadOrder

Registry Remained Open,Summer Vacation Not Excluded From Computation Of Limitation: NCLAT Delhi

Pallavi Mishra

Tags