National Company Law Appellate Tribunal
Kalyan Dombiwali Municipal ... vs Reliance Infratel Limited & Anr on 4 October, 2023
Author: Ashok Bhushan
Bench: Ashok Bhushan
NATIONAL COMPANY LAW APPELLATE TRIBUNAL
PRINCIPAL BENCH, NEW DELHI
Company Appeal (AT) (Insolvency) No.1260 of 2023
& I.A. No. 4442 of 2023
IN THE MATTER OF:
Kalyan Dombivli Municipal Corporation ...Appellant
Versus
Reliance Infratel Ltd. & Anr. ...Respondents
Present:
For Appellant: Mr. Rahul Chitnis and Mr. Samrat K. Shinde,
Advocates.
For Respondents:
ORDER
04.10.2023: I.A. No. 4442 of 2023: This is an application praying for condonation of delay in filing the Appeal. Impugned order was passed on 03.12.2020. The Appellant who was Operational Creditor aggrieved by the order has come up in this Appeal and filed this Appeal on 01.09.2023. Learned counsel for the Appellant submits that Appellant was not aware of the order, hence, he could not file the Appeal earlier. It is submitted that the Appellant came to know about the order only on 31.07.2023, hence, thereafter the Appeal has been filed.
2. Appeal under Section 61 has to be filed within 30 days from the date of order. The Hon'ble Supreme Court in the matter of "V. Nagarajan vs. SKS Ispat and Power Limited & Ors., (2022) 2 SCC 244" has noted the difference between the language of Section 421(3) of the Companies Act which provides for filing of appeal from the date on which copy of the order is made available to the person aggrieved. Conscious omission of the said sentence in Cont'd.../ -2- Section 61 of the I&B Code clearly shows that the 30 days' period prescribed was on purpose which has already been held in V. Nagarajan's case.
3. Learned counsel for the Appellant submits that V. Nagarajan was the case where party was present when judgment was pronounced. He submits that Appellant was not present when the judgment was pronounced and he was not a party to the proceedings. Learned counsel for the Appellant has relied on judgment of this Tribunal in "Prowess International Pvt. Ltd. vs. Action Ispat & Power Pvt. Ltd., 2018 SCC OnLine NCLAT 644", where this Tribunal has held that Appeal has to be filed within 30 days from the date of knowledge of the order against which Appeal is preferred. In view of the judgment of the Hon'ble Supreme Court in V. Nagarajan, we are unable to follow judgment of this Tribunal in Prowess International Pvt. Ltd.
4. Timelines are of great significance in the I&B Code. The filing of the Appeal within 30 days from the date of order is for all concerned who feel aggrieved by the order. Learned counsel for the Appellant contends that the Appellant had no knowledge when order was passed, therefore, they could not file appeal, hence, limitation shall only begin on 31.07.2023 when they came to know about the order. In event, such contention is accepted, the resolution under the Code will become indefinite and uncertain, that is why timelines prescribed are important and for filing an appeal prescribed period is 30 days from the date of order, hence, limitation shall commence from the date when order is passed and shall not depend on the date when Appellant came to know of the order.
Company Appeal (AT) (Insolvency) No.1260 of 2023 -3-
5. We are of the view that inordinate delay in filing the Appeal cannot be condoned. Delay Condonation Application is dismissed. In result, Memo of Appeal is rejected.
[Justice Ashok Bhushan] Chairperson [Barun Mitra] Member (Technical) [Arun Baroka] Member (Technical) Archana/nn Company Appeal (AT) (Insolvency) No.1260 of 2023