13 October, 2021
Matter: National Spot Exchange Ltd v. Mr. Anil Kohli, Resolution Professional for Dunar Foods Ltd
Order dated: 14 September 2021
Summary: Under the Code, an order of the NCLT should be appealed before the NCLAT within 30 (thirty) days. However, the NCLAT has powers to condone a delay of 15 (fifteen) days over and above the period of 30 (thirty) days. In the present case, National Spot Exchange Limited (NSEL) was aggrieved with the order of the NCLAT refusing to condone a delay of 74 (Seventy-four) days in preferring an appeal against the order passed by the NCLT. The said order of NCLAT was challenged by NSEL before the SC, where the main issue under consideration was whether the NCLAT could have condoned the delay beyond the statutory limitation period of 30 (thirty) plus 15 (fifteen) days and whether, in the alternative, the SC could exercise its inherent powers under the Constitution of India to condone such delay.
The SC held that where the law itself commands that a court or tribunal cannot condone delay beyond a certain period or limits the power to condone delay to a certain specific number of days, then the same would come under the ambit of legislation and would not be condonable even by taking recourse of the provisions of the Constitution of India. If the Code intended to allow for the condonation of delay to any extent, contrary provisions would not exist limiting the number of days for which the delay can be condoned. Furthermore, the SC stated that if the language of the act is sufficiently clear, the court has to give effect to it, and accordingly held that the NCLAT has no jurisdiction to condone the delay exceeding 15 (fifteen) days from the period of 30 (thirty) days as contemplated under the Code and the appeal was dismissed.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
