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Civil · Reportable judgment

State Bank of India vs India Power Corporation Limited

Court
Supreme Court of India
Date
27 September 2024
Case No.
Civil Appeal No. 10424 of 2024
Result
Allowed
Bench
D.Y. Chandrachud, Manoj Misra
Citation
[2024] 10 S.C.R. 384 : 2024 INSC 774
Acts & Sections
National Company Law Tribunal Rules, 2016 National Company Law Appellate Tribunal… Insolvency and Bankruptcy Code, 2016
Supreme Court Reports [2024] 10 S.C.R. 384 : 2024 INSC 774
Issue for consideration
The issue which arises for consideration is the interpretation of Rule 50 of the National Company Law Tribunal Rules, 2016 (NCLT Rules) and Rule 22 of the National Company Law Appellate Tribunal Rules, 2016 (NCLAT Rules).
Headnote

National Company Law Tribunal Rules, 2016 – Rule 50 – National Company Law Appellate Tribunal Rules, 2016 – Rule 22 – Interpretation of:

Held: Rule 22(2) of the NCLAT Rules requires that every appeal shall be accompanied by a certified copy of the impugned order – Rule 50 of the NCLT Rules prescribes that the Registry shall send a certified copy of the final order free of cost and certified copies may be made available on payment of costs in terms of the Schedule of Fees in all other cases – Both the certified copy which is made available free of cost as well as the certified copy which is made available on the payment of costs, are treated as certified copies for the purpose of Rule 50 – A litigant who does not apply for a certified copy cannot then fall back and claim that he was awaiting the grant of a free copy to obviate the bar of limitation. [Para 19]

Read the full headnote (1 more paragraph)

National Company Law Tribunal Rules, 2016 – Rule 50 – National Company Law Appellate Tribunal Rules, 2016 – Rule 22 – Before NCLAT, appellant filed an application for condonation of delay on the ground that the appeal was lodged with delay of 3 days beyond the 30 day period prescribed – A divergence arose between the two members of the NCLAT – The third member agreed with the judicial member in dismissing the application for condonation of delay: Held: The Judicial Member, NCLAT held that the certified copy which was filed by the appellant was a “free of cost” copy and hence in the absence of an application for the grant of a certified copy, the delay of three days could not be condoned – The Technical Member, on the other hand, held that no distinction could be made between certified copies obtained through the payment of fee and a free copy and sufficient cause was shown for condoning the delay of three days – The third member agreed with the judicial member – In the instant case, the free copy was made available on 14.11.2023 after the decision of the NCLT was pronounced on 30.10.2023 – The appeal was lodged on 02.12.2023 – The appeal was lodged with a delay of only three days beyond the statutory period of 30 days and, therefore, fell within the condonable period of 15 days – Sufficient cause was shown for condoning the delay of three days – A Schedule of Fees is prescribed by the NCLT Rules – Entry 31 of the Schedule stipulates that the fee for obtaining true certified copies of final orders passed to parties other than the concerned parties under Rule 50 shall be Rupees five per page – The stipulation of Rupees five per page in Entry 31 excludes “the concerned parties under Rule 50” – The provisions of Rule 50 of the NCLT Rules place both the free certified copy as well as the certified copy which is applied for on payment of fees on the same footing – The appeal in the present case was filed within the condonable period of 15 days, which should have been condoned – Accordingly, the delay of three days in filing the appeal shall stand condoned. [Paras 5, 20, 21, 22, 23]

Keywords: Interpretation of Rule 50 of the National Company Law Tribunal Rules, 2016 · Rule 22 of the National Company Law Appellate Tribunal Rules, 2016 · Section 61(2) of Insolvency and Bankruptcy Code, 2016 · Condonation of delay · Certified copy of order · Free of costs · Payment of costs · Bar of limitation

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Order 1. On a difference between two members of the National Company Law Appellate Tribunal,1 reflected in a split verdict on 1 May 2024, the third Member, by a judgment dated 9 July 2024, agreed with the Judicial Member in dismissing the application for condonation of delay. 2. The facts, insofar as they are relevant for the disposal of the Appeal, fall in a narrow compass. 3. The appellant, State Bank of India, instituted an application under Section 7 of the Insolvency and Bankruptcy Code 20162 against the respondent. The National Company Law Tribunal3 at Hyderabad rejected the petition
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