'Free of cost' copy of final order sent by NCLT registry is not certified copy: NCLAT

A 'free of cost' copy of a final order sent by the registries of the National Company Law Tribunal (NCLT) cannot be considered a "certified copy" of such order for the purpose of filing an appeal before the National Company Law Appellate Tribunal (NCLAT), the Chennai Bench of the NCLAT recently held. .In an order passed on March 15 this year, a bench comprising of judicial members Justices M Venugopal and Sharad Kumar Sharma and technical member Jatindranath Swain of NCLAT said that the 'free of cost' copy of final order sent by NCLT registry in compliance with NCLT Rules, is not a 'certified copy' of the order for the purpose of filing an appeal..“A mere running of the eye over the rule 50 of the National Company Law Tribunal Rules, 2016 clearly points out that the Application of the Petitioner/Appellant to comply with a certified copy by paying the schedule of fees cannot be dispensed with and at best, the sending of the certified copy of final order by the authorities concerned, Free of Cost, is an obligation caused upon the Office of the Registry of the National Company Law Tribunal, as per National Company Law Tribunal Rules. Moreover, that the receipt of free of cost copy, the Petitioner/Appellant, by receiving the same, and after recovering from illness, cannot be a substitute for a Certified Copy of the Impugned Order, to accompany the Appeal as per Rule 22(2) of the National Company Law Appellate Tribunal Rules, 2016," the NCLAT said..The NCLAT was hearing an appeal filed by one Munagala Roja Harsha Vardhini (appellant) against a November 2022 order of NCLT.The appellant claimed that he had, on December 7, 2022, received a free of cost certified copy of the NCLT order passed on November 24, 2022. Thereafter, on January 19, 2023, he filed an appeal before the NCLAT Chennai against the NCLT order. He also filed an application for condonation of delay under Section 61(2) of IBC along with such appeal. 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 says the NCLAT may allow an appeal beyond 30 days, by a maximum of fifteen days, on demonstration of sufficient cause for the delay..The appellant argued that the limitation period of 30 days to file the appeal should be calculated from the date that he received the certified copy from the registry, which was December 7, 2023. Therefore, the limitation period will end on January 6, 2023 and hence, the appeal filed on January 19 was within the condonable limit of 45 days as per proviso, he argued..The NCLAT, however, noted that the appellant did not apply for the certified copy of the NCLT order by paying fees as per Rule 50 of the National Company Law Appellate Tribunal Rules, 2016 which makes it mandatory for all parties to pay a fee for a certified order copy.The tribunal held that irrespective of whether or not a party received the free order copy, the requirement imposed upon them under Rule 50 to apply for a certified copy by "paying requisite fees cannot be dispensed with." "The free of cost copy of final order is sent by Registry of NCLT to the parties in compliance of NCLT Rules and such copy cannot be substituted for a certified copy," the NCLAT said..Besides, the date of pronouncement of order can only be the date on which the order was pronounced i.e. November 24, and hence, the limitation to file such appeal should be calculated from the date of pronouncement of such order and not the receipt of free of cost certified copy of the order, the NCLAT underscored."As far as the present case is concerned, the delay of 12 days has computed by the Petitioner/Appellant, in her Application, from the date of receipt of free copy on 07.12.2022 cannot be accepted and as per Rule 150 of the National Company Law Tribunal Rules, 2016, the Pronouncement date can only be the date on which the order was pronounced on 24.11.2022 by the Adjudicating Authority/Tribunal. If calculated from the date on which the instant Appeal came to be filed through e-portal on 19.01.2023, the actual delay comes (after the expiry of 30 days in preferring an Appeal) will be 26 days. In all there is a delay of 26 days which is beyond the condonable period of (30 + 15 = 45 days) being the outer limit, as provided under Section 61(2) of the Insolvency and Bankruptcy Code, 2016," it said..Advocates TK Bhaskar, Mayan H Jain, Pranav Gopalakrishnan, and Niveditha Narayanan appeared for the appellant.Advocates Chandra Mouli Prabhakar and Vandhana Prabhu appeared for the respondent. .[Read Order]