Section 61(2) | Holidays Can Be Excluded Only From Limitation Period Of 30 Days, Inapplicable To Further 15 Days Period: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Sandeep Anand v Gopal Lal Baser, has held that while computing limitation in filing of appeal, the benefit of excluding public holiday or holiday is only available with respect to 30 days limitation period given under Section 61(2). Such benefit would not apply to the further 15 days period given under Proviso to Section 61(2) of IBC. Background Facts The Section 61(2) of IBC provides a period of 30 days for filing an appeal against the order of NCLT. The Proviso to Section 61(2) of IBC states that NCLAT may allow an appeal beyond 30 days, by a maximum of fifteen days, on demonstration of sufficient cause for the delay. Sandeep Anand (“Appellant”) filed an appeal before the NCLAT after expiry of 45 days from the date of NCLT order under challenge. The appeal was filed beyond the statutory limitation period of 30 days as well as the discretion based condonable period of 15 days. Alongside, the Appellant filed an application seeking condonation of delay in filing of appeal. It was submitted that the 45th day to file the appeal fell on a ‘Public Holiday’ and for the next two days the Tribunal was closed. Since the Tribunal was closed on the last day of limitation to file appeal, the appeal must be treated to be filed within 45 days. NCLAT Verdict The Bench observed that under Proviso to Section 61(2), the jurisdiction to condone the delay conferred upon NCLAT Tribunal is only 15 days. However, the benefit of Public Holiday or holiday can only be given while computing limitation of 30 days under Section 61(2) of IBC and not otherwise. The Bench declined to condone the delay as the appeal was filed beyond 45 days period. “We are of the view that the benefit as claimed in paragraph 5 is not available which benefit can be availed only with respect to the period of limitation provided with regard to period of 30 days…We, thus, are of the view that the delay in filing the appeal being beyond 15 days, the application praying for condonation of delay has to be dismissed. Consequently, the memo of appeal is rejected.” The application for condonation of delay as well as the appeal have been dismissed. Case Title: Sandeep Anand v Gopal Lal Baser Case No.: Company Appeal (AT) (Ins) No. 767 of 2023 Counsel For Appellant: Mr. Rajat Bhardwaj, Advocate Counsel For Respondents: Mr. Umesh Singhal, Asmita Duggal, CS Akshit Gupta. Click Here To Read/Download Order

Section 61(2) | Holidays Can Be Excluded Only From Limitation Period Of 30 Days, Inapplicable To Further 15 Days Period: NCLAT Delhi

Pallavi Mishra

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