No Requirement of Application For Condonation Of Delay to be filed: NCLAT Quotes SC’s Order on Extended Limitation Period due to COVID-19
The National Company Law Appellate Tribunal (NCLAT) in the case of M/s. Essjay Ericsson Private Limited v/s M/s. Frontline (NCR) Business Solutions Pvt. Ltd. while Quoting Supreme Court’s Order on Extended Limitation Period due to COVID-19 said that there is no requirement to file an application for condonation of delay.
An Appeal has been filed against the judgment and order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench V, by which Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Appellant has been rejected.
The issues raised was whether judgment and order of the Supreme Court passed in Suo Motu Writ Petition shall operate as automatic extension of the limitation and whether for taking benefit of judgment of the Supreme Court passed in Suo Motu Writ Petition, an Applicant has to file an application for condonation under Section 5 of the Limitation Act, 1963 and satisfy the Court or Tribunal that sufficient cause has been made out for condonation of delay.
Advocate Rajeev Narayan, appearing for the respondent at the very outset contended that the Appeal is barred by time and should be rejected on the ground of delay. No Application for condonation of delay has been filed by the Appellant. The Counsel submitted that the impugned judgment was passed on 08.06.2021 and the Appeal has been filed on 02.09.2021 i.e. much after expiry of limitation for filing an Appeal.
Advocate Partho Bhattacharya and Advocate Anand Kumar Singh, appearing for the appellant, refuted the submission of the Counsel for the Respondent contended that the present Appeal is not barred by time. He urged that in view of the judgment of the Supreme Court passed in Suo Motu Writ Petition, the Appellant is entitled to claim extension for the limitation till 02.10.2021. The Appeal having been filed before that the same is not barred by time.
The three member bench of Justice Ashok Bhushan, Justice Jarat Kumar Jain and Dr. Alok Srivastava noted that the Supreme Court while referring to its earlier order has stated that “this Court directed extension of the period of limitation in all proceedings before the Courts/ Tribunals including this Court w.e.f. 15.03.2020 till further orders”.
The tribunal said that when the Supreme Court has granted
The tribunal while overruling the objection raised by the counsel for the respondent held the appeal to be within time and added that there was no requirement of filing an application for condonation of delay by the appellant and the appeal cannot be held to be barred by time.
