Case Number: Civil Appeal No(s). 6187 OF 2019

Judges Name: Hon’ble Judges M.R. Shah J, Aniruddha Bose J

Order dated: 14.09.2021

Facts of the Case:  

This is an appeal preferred against the order of the Hon’ble National Company Law Appellate Tribunal (NCLAT) which refused to condone the delay of 44 days for appeal beyond the statutory period of 45 days (30 +15 days). The Appellant submitted its claim to the Interim Resolution Professional (IRP) of Dunar Foods Limited. The IRP rejected the claim of the Appellant on the ground that there is no privity of contract between the Appellant and the Corporate Debtor. The rejection of the claim was challenged by the Appellants before the Hon’ble National Company Law Tribunal (NCLT).  The NCLT rejected the appeal and upheld the decision of the IRP.  Aggrieved, the Appellants preferred an appeal before the NCLAT with a delay of 44 days. The NCLAT refused to condone the delay on the ground under Section 61(2) of the Insolvency and Bankruptcy Code, 2016 (IBC). The Appellants have preferred this appeal before the Hon’ble Supreme Court. 

Order:

The Hon’ble Supreme Court observed/held as follows:

• There is no error on part of NCLAT in not condoning the delay of 44 days, which was beyond the delay of 45 (30+15) days which cannot be condoned as per Section 61(2) of the IBC.
• Unless the Parliament has carved out any exception to the period of limitation, it cannot be given effect by the Courts and such powers to make exceptions are only with the Parliament and legislature.
• The Court has no power to extend the period of limitation even on genuine grounds such as illness, accident etceven though it can cause hardship or inconvenience to a particular party because the Parliament has not made out any such exception in the statute itself.
• Considering the statutory provisions which provide that delay beyond 15 days (after 30-day period) in preferring the appeal is not condonable, the same cannot be accepted even in exercise of powers under Article 142 of the Constitution of India by the Supreme Court.

The Supreme Court dismissed the appeal.