17 November 2021
Matter: V. Nagarajan v. SKS Ispat and Power Ltd.& Ors
Order Dated: 22 October 2021
Summary
In the present case, the NCLT, Chennai Bench’s order dismissing an application of Mr. V. Nagarajan (Appellant) was pronounced in open court on 31 December 2019, but the copy of the order was uploaded on NCLT’’s website first on 12 March 2020 (with an error) and then on 20 March 2020 (corrected copy). Though the Appellant applied for a certified copy of the order on 23 March 2020, the same was not received on account of the COVID-19 induced national lockdown. The appeal filed by the Appellant before the NCLAT on 08 June 2020, challenging the NCLT’s order, was dismissed on the grounds that the appeal has been filed beyond the 30 (thirty) day limitation period under the Code and is therefore barred by limitation.
The Appellant then approached the SC stating that the clock of limitation should start running only after issuance of the certified copy of order in accordance with the law, and not from date of pronouncement of order. The SC noted that the Code mandates a limitation period for appeals to be 30 (thirty) days extendable by 15 (fifteen) days, whereas the Companies Act, 2013 provides for a limitation period of 45 (forty-five) days “from the date the order is made available to the aggrieved party.” The SC opined that the Code is a complete code and will have an overriding effect on Companies Law, 2013, and therefore the period of limitation under the Code will prevail over that of the Companies Act, 2013. Further, the conscious absence of the phrase “from the date the order is made available to the aggrieved party” from the Code shows that the legislative intent was not to extend the limitation period for filing an appeal until a certified copy of the order is made available to an aggrieved party. Accordingly, the SC upheld the NCLAT’s order and held that the limitation period under the Code for filing an appeal will start running from the date of pronouncement of order and not the date on which the order is uploaded on the website or certified copy is made available to a party.
