Case Details Sanjay Pandurang Kalate vs Vistra Itcl (India) Limited and Others

Court

Supreme Court of India

Date

4 December 2023

Case No.

Civil Appeal Nos.7467-7468 of 2023

Result

Disposed

Bench

D.Y. Chandrachud, J.B. Pardiwala, Manoj Misra

Citation

[2023] 15 S.C.R. 313 : 2023 INSC 1063

Issue for consideration

Whether appeal instituted before the NCLAT was within limitation. In its impugned order, the NCLAT concluded that the appeal was barred by limitation on the ground that it was instituted beyond the outer limit of 45 days permissible under Section 61 of the Insolvency and Bankruptcy Code 2016.

Headnote

Insolvency and Bankruptcy Code 2016 – s.61 – The appellant filed an interlocutory application before the NCLT alleging inter alia that the reply to the s.7 application on behalf of the Corporate Debtor was filed by respondent no.2 without authorization of the Board of Directors or intimation to the appellant – On 17.05.2023, the NCLT heard the application – The order of the NCLT was not pronounced – The order was uploaded by the Registry of the NCLT on 30.05.2023 though the order carries the date of 17.05.2023 – NCLT dismissed appellant’s application – Appeal against the order was e-filed before the NCLAT – NCLAT dismissed the application as barred by limitation – Propriety: Held: In the instant case, the cause list for 17.05.2023 (NCLT) placed on record by the appellant indicates that the case was listed for admission and not for pronouncement – Further, on a specific query of the Court, it is not in dispute between counsel for the appellant and the respondent, that no substantive order was passed on 17.05.2023 by the NCLT – In these circumstances, limitation would not begin to run on 17.05.2023 which was the date on which hearings concluded – As no order was passed before 30.05.2023, there was no occasion for the appellant to lodge an application for a certified copy on 17.05.2023 – Time for filing an appeal would commence only when the order appealed from was uploaded since prior to that date no order was pronounced – The period of limitation began to run on 30.05.2023 – The 30 day limitation period provided in s.61(2) of the IBC concluded on 29.06.2023 – Though the appeal was filed beyond the period of thirty days, it was within the condonable period of fifteen days – This Court is of the considered view that the appeal should be restored to the NCLAT for reconsidering whether the appellant has shown sufficient cause for condoning the delay beyond thirty days – Therefore, the impugned order of the NCLAT declining to condone the delay is set aside and the proceedings are restored to the file of the NCLAT. [Paras 19 and 21] Limitation – What stops limitation from running, date of E-filing of appeal or physical copy of appeal:

Held: It was settled in Sanket Agarwal case that the date of e-filing of the appeal and not filing of the physical copy of the appeal stops the limitation from running. [Para 22]

LIST OF CITATIONS AND OTHER REFERENCES

JUDGMENT / ORDER OF THE SUPREME COURT JUDGMENT DR. DHANANJAYA Y CHANDRACHUD, CJI 1. Admit. 2. These appeals arise under Section 62 of the Insolvency and Bankruptcy Code 20161 from a judgement dated 14 September 2023 of the National Company Law Appellate Tribunal.2 The NCLAT dismissed the appeal against the order of the National Company Law Tribunal, Mumbai 3 on the ground of limitation. 3. At the outset, it is clarified that the findings in this judgement are limited to a determination of the question of limitation. The detailed facts and averments on the merits of the larger dispute betw

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