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2025 Supreme(Online)(NCLAT) 179
NATIONAL COMPANY LAW APPELLATE TRIBUNAL
Justice Ashok Bhushan (Chairperson) , Hon'ble Mr. Arun Baroka (Member (Technical)) , Hon'ble Mr. Barun Mitra (Member (Technical)) ,
ATUL BABULAL PRAJAPATI & ANR. – Appellant
Versus
SUHAS DINKAR BHATTBHATT & ORS – Respondent
8554/ND/2024 IA
The limitation for filing an appeal excludes the day of the order and any holidays, allowing for a 15-day condonable delay under NCLT Rules.
Headnote:(A) National Company Law Tribunal (NCLT) Rules, 2016 - Rule 3 - Delay in filing appeal - Condonation of delay application filed by appellant, a vegetable vendor, for 15 days delay in filing appeal against NCLT order dated 01.10.2024 - Appellant claimed ignorance of the order and ill-health - Respondent contested the delay as beyond statutory limit - Tribunal found that the appeal was filed within the condonable period of 11 days after proper computation of holidays. (Paras 5, 6, 9)
(B) Limitation - The limitation for filing an appeal commences from the date of pronouncement of the order, and the day of pronouncement is excluded from the computation of time - The Tribunal clarified the calculation of the limitation period considering holidays. (Paras 5, 8)
Facts of the case:
The appellant became aware of the NCLT order only after a week and filed an appeal on 15.11.2024, claiming he was not familiar with legal processes. The respondent argued the appeal was filed beyond the 15-day limit.
Findings of Court:
The court found that the delay in filing the appeal was only 11 days and thus within the condonable period.
Issues: The main issues were whether the appeal was filed within the condonable period and the validity of the appellant’s claims regarding the delay.
Ratio Decidendi: The court held that the limitation period must exclude the day of the order and any holidays, establishing that the appeal was timely filed.
Result: Delay condonation application is allowed.
ORDER
(06th March, 2025) Ashok Bhushan, J.
This is an application praying for condonation of delay of 15 days in filing the Appeal. The Appeal has been filed against the order dated 01.10.2024 passed by the Adjudicating Authority (National Company Law Tribunal) Ahmedabad, Division Bench, Court-1 by which application filed by the Resolution Professional being IA No.556/NCLT/AHM/2021 has been partly allowed and partly rejected. Appellant aggrieved by the said order has filed this Appeal.
2. This Appeal has been e-filed on 15.11.2024. The Appellant’s case in application is that Appellant had gained the knowledge of the order only after a week of pronouncement. Appellant is a vegetable vendor and he failed to understand the intricacy of legal process and the strict timeline. Appellant approached its counsel on 10.11.2024 thereafter, the appeal has been prepared and e-filed on 15.11.2024. In support of delay condonation, an additional affidavit has been filed by the appellant where appellant has pleaded that it came to know about the order on 23.10.2024 and his arguing counsel was not present which is apparent from the order sheet. Appellant has also stated about his ill-health. It is pleaded that as per Rule 3 of the NCLAT Rules, 2016, the day on which the judgment is pronounced to be excluded, hence, the appeal filed on 15.11.2024 is within condonable period.
3. Counsel for the Respondent filed a reply to the application as well as additional-affidavit in reply. The case of the Respondent is that Appeal has been filed on 46th day, hence, Appeal has been filed beyond condonable period and delay condonation application deserves to be rejected. It is pleaded that the delay cannot exceed the statutory outer limit of 15 days. Additional affidavit in reply-affidavit further pleads that applicant/appellant has made incorrect statement that he became aware of the order through e-mail dated 23.10.2024. Details were communicated vide e-mail dated 09.10.2024. Further whatsapp call was made to the Appellant on 01.10.2024 by liquidator on his mobile number. It is further stated that the medical certificate filed along with affidavit are not genuine and applicant has not shown any sufficient cause for condonation of delay.
4. We have considered the submissions of the Counsel for the parties and perused the record.
5. The first question which need to be answered is that as to whether the appeal is filed within condo nable period of 15 days or appeal has been filed beyond 15 days. It is settled law that jurisdiction to condone the delay vested in this Tribunal is only 15 days as per Section 61(2) proviso. The order was delivered on 01.10.2024. As per Rule 3 of the NCLAT Rules, 2016, the day from which the said period reckoned shall be excluded. Thus, 01.10.2024 has to be excluded. Rule 3 of the NCLAT Rules, 2016 is as follows:-
“3. Computation of time period.- Where a period is prescribed by the Act and these rules or under any other law or is fixed by the Appellate Tribunal for doing any act, in computing the time, the day from which the said period is to be reckoned shall be excluded, and if the last day expires on a day when the office of the Appellate Tribunal is closed, that day and any succeeding day on which the Appellate Tribunal remains closed shall also be excluded.”
6. For computing the 30 days’ period, if the last day expires on a day when the office of the Tribunal is closed, that day and any succeeding day on which the Appellate Tribunal remains closed shall also be excluded. After excluding 01.10.2024 from computation, limitation of 30 days was expiring on 31.10.2024. From 30.10.2024 to 03.11.2024, it was holidays both for the Court as well as the Registry (Diwali Holidays). We in our judgment in Company Appeal (AT) (Insolvency) No.1862 of 2024- “BSE Limited vs.
Mrudula Brodie & Ors.” delivered on 21.02.2025 has held that for computing 30 days’ period, if 30th day is fallen on holiday, the said period also need to be excluded. In the prese
