[IBC] NCLAT cannot condone delay beyond 15 days in appeal against decision of NCLT: Supreme Court

The Supreme Court on Tuesday held that as per Section 61(2) of the Insolvency and Bankruptcy Code, the National Company Law Appellate Tribunal (NCLAT) cannot condone a delay beyond 15 days in an appeal filed against a decision of the National Company Law Tribunal (NCLT) [National Spot Exchange Limited v. Mr. Anil Kohli, Resolution Professional]..A Bench of Justices MR Shah and Aniruddha Bose held that the NCLAT can condone a delay only upto 15 days as prescribed in proviso to Section 61(2) of IBC.“Considering the statutory provisions which provide that delay beyond 15 days in preferring the appeal is uncondonable, the same cannot be condoned even in exercise of powers under Article 142 of the Constitution,” the Court held..The Court, therefore, dismissed an appeal filed by National Spot Exchange Limited (NSEL) against an order of NCLAT which had refused to condone the delay of 44 days in preferring the appeal against an order passed by NCLT.Section 61(2) provides that every appeal from NCLT to NCLAT has to be filed within 30 days.Proviso to Section 61(2), however, provides for NCLAT to condone a delay of 15 days over a period of 30 days if it feels that there was sufficient cause for not filing the appeal within the limitation period of 30 days.Thus, an appeal has to be filed within 45 days from the date of NCLT verdict if NCLAT has to condone delay.NSEL had, however, filed the appeal with a delay of 44 days beyond the total period of 45 days..As the NCLAT can condone the delay up to a period of 15 days only, it refused to condone the delay which was beyond 15 days from completion of 30 days, i.e., in the present case delay of 44 days and consequently dismissed the appeal.NSEL contended before the Supreme Court that though the NCLAT may be justified in dismissing the appeal on the ground of limitation by holding that it has no jurisdiction to condone the delay beyond 15 days, the Supreme Court may exercise its powers under Article 142 of the Constitution of India, in the peculiar facts and circumstances of the case since the stakes involved are high (₹693 crore)..The top court, however, refused to accept the same stating that what cannot be done directly considering the statutory provisions cannot be permitted to be done indirectly, while exercising the powers under Article 142 of the Constitution.“There was a delay of 44 days in preferring the appeal which was beyond the period of 15 days which maximum could have been condoned and in view of specific statutory provision contained in Section 61(2) of the IB Code, it cannot be said that the NCLAT has committed any error in dismissing the appeal on the ground of limitation by observing that it has no jurisdiction and/or power to condone the delay exceeding 15 days,” the Court observed dismissing the plea..[Read Judgment]